JINNENG(SH:603113) Huachuang Securities·2024-11-09 09:56Investment Rating - The report maintains a "Recommended" rating for the company [1] Core Views - The company achieved profitability in Q3 after a loss in the first three quarters of 2024, with significant revenue growth driven by the second phase of olefin production [1] - The target price is set at 7.28 CNY, reflecting a valuation based on price-to-book ratio [1] Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 12.15 billion CNY, an increase of 11.33% year-on-year; however, the net profit attributable to shareholders was a loss of 0.32 billion CNY [1] - In Q3 alone, revenue reached 5.26 billion CNY, showing a year-on-year increase of 42.32% and a quarter-on-quarter increase of 50.44% [1] - The gross profit margin for Q3 was 2.90%, down 2.34 percentage points year-on-year but up 1.43 percentage points quarter-on-quarter [1] Sales and Production Data - Olefin sales volume in Q3 was 447,900 tons, representing a year-on-year increase of 127.34% and a quarter-on-quarter increase of 194.27% [1] - The company’s carbon black product sales volume was 184,900 tons, with year-on-year growth of 15.34% [1] - The average selling price for olefins was 6,651 CNY per ton, reflecting a year-on-year increase of 16.03% [1] Market Outlook - The report indicates that the olefin industry faces pressure from new capacity coming online, which may affect pricing dynamics in the near term [1] - The carbon black segment is expected to benefit from steady growth in the tire industry, with the company having a strong regional and customer advantage [1] - The second phase of olefin production is anticipated to improve profitability, with no significant capital expenditures expected in the near term [1]