Cathay Biotech (688065)2024-11-05 11:35Investment Rating - The report maintains an "Outperform" rating for the company [5] Core Insights - The company reported a revenue of 2.215 billion yuan for Q3 2024, representing a year-over-year increase of 41% and a quarter-over-quarter increase of 1% [5] - The net profit attributable to shareholders for Q3 2024 was 0.98 billion yuan, a year-over-year increase of 36% but a quarter-over-quarter decrease of 31% [5] - The company is experiencing a recovery in demand for its long-chain dicarboxylic acid products, which is expected to drive future growth [5] - The company is actively expanding its market share in the dodecanedioic acid segment and is working on the commercialization of bio-based materials [5] Financial Summary - For Q3 2024, the company achieved a gross margin of 34.03%, with year-over-year and quarter-over-quarter changes of +7.97 percentage points and +0.52 percentage points, respectively [5] - The net profit margin for Q3 2024 was 12.24%, with year-over-year and quarter-over-quarter changes of -4.37 percentage points and -5.82 percentage points, respectively [5] - The company’s total revenue is projected to reach 3.108 billion yuan in 2024, with a year-over-year growth rate of 47% [6] - The net profit for 2024 is estimated at 488 million yuan, reflecting a year-over-year growth rate of 33.1% [6] Business Development - The company is collaborating with industry partners to build a bio-based materials ecosystem and has announced plans to raise up to 6.6 billion yuan for strategic initiatives [5] - The company has signed a strategic cooperation agreement with Hefei City Government and other partners to develop a synthetic bio-materials industry cluster [5] - The company is also investing in AI protein design platforms to enhance its technological capabilities [5]