Lily Group(SH:603823) EBSCN·2024-10-29 15:07Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The demand for organic pigments has improved, leading to significant growth in the company's performance in Q3 2024, with a year-on-year increase in net profit of 76.90% [1][2]. - The company is a leading player in China's organic pigment industry, gradually shifting towards high-performance organic pigments [3]. - The bankruptcy of a global competitor, Heubach, is expected to benefit the company by increasing its market share in high-performance organic pigments [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 1.79 billion yuan, a year-on-year increase of 3.87%, and a net profit of 144 million yuan, up 76.90% year-on-year [1]. - In Q3 alone, the company reported revenue of 570 million yuan, down 3.86% year-on-year and 9.59% quarter-on-quarter, with a net profit of 44 million yuan, reflecting a year-on-year increase of 65.19% but a quarter-on-quarter decrease of 26.77% [1]. Sales and Product Performance - The sales volume of the company's pigment products showed positive trends, with significant increases in the sales of the permanent yellow series (8,056 tons, +14.4% YoY), permanent red series (4,162 tons, +10.5% YoY), and others, while the sales of the quinacridone series decreased by 16.3% [2]. - The price of the quinacridone series increased significantly by 22.5% year-on-year, while other pigment prices saw slight declines [2]. Strategic Developments - The company has a production capacity of 40,000 tons of organic pigments and 10,000 tons of supporting intermediates, with over 200 specifications available to meet diverse downstream needs [3]. - In July 2024, the company raised 49 million yuan through a private placement to fund a project aimed at producing 5,000 tons of high-performance organic pigments and 4,500 tons of supporting intermediates [3]. Profit Forecast and Valuation - The report maintains profit forecasts for 2024-2026, estimating net profits of 204 million yuan, 259 million yuan, and 312 million yuan, respectively, with corresponding EPS of 0.49 yuan, 0.62 yuan, and 0.75 yuan [4][5].