JHSY(002597) Huachuang Securities·2024-10-31 12:25Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 31.28 CNY, compared to the current price of 23.25 CNY [1]. Core Views - The company has experienced a price turning point in Q3, with expectations for a performance turnaround in Q4 due to rising product prices and improved demand [2]. - The company's Q3 revenue was 1.504 billion CNY, showing a year-on-year increase of 6.04% and a quarter-on-quarter increase of 13.54% [1][2]. - The core products, including sucralose and aspartame, have seen significant price increases, which are expected to positively impact Q4 performance [2]. - The second phase of the Dingyuan project has started contributing to profits, and new processes are anticipated to further reduce costs [2]. Financial Summary - For the first three quarters of 2024, the company achieved a total revenue of 4.043 billion CNY, a year-on-year decrease of 1.24%, and a net profit attributable to shareholders of 409 million CNY, down 27.39% year-on-year [1][3]. - The projected net profits for 2024-2026 are 768 million CNY, 1.048 billion CNY, and 1.266 billion CNY, respectively, with corresponding price-to-earnings ratios of 17x, 13x, and 10x [2][3]. - The company’s total revenue is expected to grow from 5.311 billion CNY in 2023 to 6.197 billion CNY in 2024, reflecting a year-on-year growth rate of 16.7% [3][6].