Zhejiang Yonghe Refrigerant (605020)2024-10-30 10:41Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Views - The company reported a slight miss in earnings expectations for Q3 2024, with revenue of 3.379 billion yuan (up 5% year-on-year) and a net profit of 146 million yuan (down 10% year-on-year) [2] - The average price of fluorocarbon chemicals continues to rise, with expectations for further price increases in Q4 2024 [2] - The company is focusing on extending its industrial chain towards high-value-added products, which is expected to drive future growth [2] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 3.379 billion yuan, a year-on-year increase of 5% [3] - The net profit for the same period was 146 million yuan, reflecting a year-on-year decrease of 10% [3] - The gross margin for Q3 2024 was 16.79%, an increase of 1.06 percentage points year-on-year [2] - The company expects to see a net profit of 203 million yuan in 2024, with projected earnings per share (EPS) of 0.53 yuan [3] Market Data - As of October 29, 2024, the company's closing price was 16.98 yuan, with a market capitalization of 6.42 billion yuan [4] - The company has a price-to-earnings (PE) ratio of 32x for 2024, which is expected to decrease to 10x by 2026 [3][4] Future Outlook - The company is expected to benefit from the optimization of the refrigerant industry and increased downstream demand, which may lead to a price rebound for refrigerants [2] - The company is also advancing its projects in fluoropolymer materials, with a total production capacity of 69,800 tons per year [2]