CAPCHEM(300037) Great Wall Securities·2024-11-07 10:41Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the industry index within the next six months [16]. Core Views - The company has shown improvement in its quarterly performance, with a focus on expanding its overseas electrolyte production capacity and steady growth in its organic fluorine chemical segment [2][4]. - The report anticipates limited downward price pressure on electrolytes, with the company actively pursuing overseas production and customer relationships, which may enhance profitability in this segment [8][6]. - The organic fluorine chemical sector is expected to maintain stable demand, with ongoing expansion of product lines and production capacity, indicating strong growth potential [7][8]. Financial Summary - For 2024, the company is projected to achieve revenues of 82.28 billion yuan and net profits of 10.99 billion yuan, with corresponding EPS of 1.46 yuan [8]. - The company's revenue for the first three quarters of 2024 was 56.67 billion yuan, reflecting a year-on-year increase of 1.51%, while net profit was 7.01 billion yuan, down 12.00% year-on-year [1][2]. - The gross profit margin for the first three quarters of 2024 was 27.09%, a decrease of 2.83 percentage points compared to the same period in 2023 [2]. - The company reported a net cash flow from operating activities of -1.90 billion yuan for the first three quarters of 2024, a significant decrease of 107.59% year-on-year [3]. Market Position and Strategy - The domestic electrolyte market is highly competitive, but the company is steadily advancing its overseas production capabilities, including a 40,000-ton/year electrolyte project in Poland and a significant investment in the U.S. for carbonate solvents and electrolyte production [4][6]. - The company has secured long-term supply agreements with well-known overseas battery manufacturers, with total overseas order amounts reaching approximately 3.2 billion USD as of the third quarter of 2024 [6][4].