KINGFA(600143) 北京韬联科技·2024-10-30 14:02Investment Rating - The report maintains a positive investment rating for the company, indicating a favorable outlook [1] Core Views - The company is positioned as a leader in the high-performance new materials sector, particularly in modified plastics, with a comprehensive product portfolio and integrated industrial chain [1][2] - The company's profitability has significantly improved, with a notable increase in both revenue and net profit, signaling a potential reversal in the industry cycle [3][4][6] - The company's core business, modified plastics, continues to grow steadily, supported by increased orders and reduced losses in the green petrochemical sector [7][8] - The company is expanding into emerging fields such as drones and robotics, leveraging its expertise in new materials to open up new growth opportunities [18][20] Financial Performance - In the first three quarters of 2024, the company achieved revenue of RMB 404.6 billion, a year-on-year increase of 18%, with Q3 revenue reaching a record high of RMB 171.2 billion, up 23% YoY [3] - Net profit attributable to shareholders in the first three quarters of 2024 was RMB 683 million, a 41% YoY increase, with Q3 net profit surging 1886% YoY to RMB 303 million [4][6] - The modified plastics segment contributed RMB 223.8 billion in revenue, accounting for 55% of total revenue, with a 15% YoY growth [8] - The company's R&D expenses in the first three quarters of 2024 were RMB 1.6 billion, a 33% YoY increase, with an R&D expense ratio of 4.0%, significantly higher than the sales expense ratio of 1.4% [21][22] Business Segments - The modified plastics segment achieved sales of 67.6 million tons in Q3 2024, generating revenue of RMB 8.5 billion, with a production-to-sales ratio of 99.9% [10][11] - The green petrochemical segment saw reduced losses, with Ningbo Jinhua and Liaoning Jinhua reporting a 30% and 36% reduction in losses, respectively, in H1 2024 [16] - The new materials segment, including fully biodegradable plastics, special engineering plastics, and carbon fiber composites, achieved full production and sales in Q3 2024, with revenue of RMB 980 million [18][19] Emerging Opportunities - The company is developing high-performance carbon fiber composites for drones and low-altitude vehicles, addressing challenges such as corrosion resistance, lightweighting, and high strength [20] - Special engineering plastics are being applied in robotics, particularly in servo motors and connectors, with potential applications in industrial and service robots [20] - The company is exploring the humanoid robotics sector through strategic investments, such as its stake in Yushu Technology [21]