CAPCHEM(SZ:300037) Huaan Securities·2024-10-29 03:44Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown growth in Q3 2024, with a year-on-year revenue increase of 1.51% to 56.67 billion yuan and a net profit of 7.01 billion yuan, although the net profit excluding non-recurring items decreased by 5.16% [1] - The performance in Q3 2024 indicates a recovery with a net profit of 2.86 billion yuan, up 1.89% year-on-year and 13.91% quarter-on-quarter, primarily driven by the growth in the fluorochemical business [1] - The company is expected to benefit from the overseas expansion of its electrolyte products, which may enhance profitability despite ongoing price pressures in the domestic market [1] Financial Performance Summary - For Q3 2024, total revenue was 20.85 billion yuan, a decrease of 3.02% year-on-year but an increase of 0.85% quarter-on-quarter [1] - The average price of domestic electrolytes in Q3 2024 was 18,700 yuan per ton, down 41.7% year-on-year and 11.9% quarter-on-quarter, impacting the company's profitability [1] - The company anticipates a recovery in profitability as it expands its overseas operations and continues to develop its fluorochemical product lines [1] Future Outlook - The company is projected to achieve net profits of 11.04 billion yuan, 15.65 billion yuan, and 20.00 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 28X, 19X, and 15X [1] - The ongoing construction of production bases and the expansion of high-end fluorochemical projects are expected to support long-term growth and market share improvement [1]