HCSC(600378) Guohai Securities·2024-11-05 07:13Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has shown significant profit growth due to the acquisition of Sinochem Blue Sky, which has enhanced its overall profitability and business structure [4]. - The refrigerant products have experienced both volume and price increases, contributing to a substantial rise in net profit for the third quarter of 2024 [3][4]. - The company is actively strengthening its core technology and advancing ongoing projects, with a total of 228 patents applied for in 2024 [5]. Financial Performance Summary - In Q3 2024, the company achieved a net profit of 315 million yuan, a year-on-year increase of 53.40%, primarily due to the acquisition of Sinochem Blue Sky [2]. - For the first three quarters of 2024, the company reported revenue of 10.207 billion yuan, a decrease of 11.61% year-on-year, and a net profit of 851 million yuan, down 18.60% year-on-year [3]. - The sales gross margin for the first three quarters was 22.73%, a decline of 2.31 percentage points year-on-year [3]. Future Projections - The company is projected to achieve revenues of 14.245 billion, 16.495 billion, and 19.184 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 1.198 billion, 1.491 billion, and 1.926 billion yuan [8]. - The expected growth rates for revenue and net profit are 81% and 33% for 2024, respectively, indicating a strong recovery trajectory [8]. Market Position - As of November 4, 2024, the company's stock price is 34.12 yuan, with a market capitalization of approximately 37.82 billion yuan [2][10]. - The company has outperformed the CSI 300 index over the past month, with a return of 7.5% compared to a decline of 1.8% for the index [2].