Adisseo(600299) 山西证券·2024-11-11 09:04Investment Rating - The report assigns a "Buy-A" rating to Adisseo (600299 SH) for the first time [1] Core Views - Strong growth in methionine sales and significant improvement in operational efficiency are key drivers [1] - The company's Q3 2024 revenue reached 4 125 billion yuan up 25 23% YoY and 9 28% QoQ with net profit of 396 million yuan up 683 55% YoY and 19 65% QoQ [1] - Gross margin improved to 29 21% up 12 61 percentage points YoY while net margin reached 9 63% up 11 69 percentage points YoY [1] Business Performance Methionine Business - Methionine revenue grew 31% YoY in Q3 2024 with liquid methionine sales hitting a quarterly record and solid methionine achieving double-digit growth [1] - Domestic methionine average price in Q3 2024 was 20 69 yuan/kg up 15 8% YoY but down 4 37% QoQ [1] - The company is progressing with the construction of a 150 000-ton solid methionine plant in Quanzhou Fujian [1] Specialty Products - Specialty products revenue grew 10% YoY in Q3 2024 with gross profit up 20% [1] - The European 30 000-ton specialty product capacity expansion project is in the ramp-up phase [1] - A 37 000-ton specialty feed additive plant in Nanjing is expected to complete mechanical construction by end of 2024 [1] Operational Efficiency - The company expects to reduce recurring costs by 178 million yuan in 2024 [1] - It has permanently closed the solid methionine production line at its Comantre France plant and optimized vitamin A production efficiency [1] Financial Projections - Revenue is forecasted to grow to 14 903/16 273/17 549 billion yuan in 2024/2025/2026 representing YoY growth of 13 0%/9 2%/7 8% [1] - Net profit is projected to reach 1 372/1 554/1 672 billion yuan in 2024/2025/2026 with YoY growth of 2529 4%/13 3%/7 6% [1] - EPS is estimated at 0 51/0 58/0 62 yuan for 2024/2025/2026 with P/E ratios of 22 6/20 0/18 6x [1] Valuation Metrics - The company's P/E ratio is projected at 22 6/20 0/18 6x for 2024/2025/2026 [1] - P/B ratio is forecasted at 1 9/1 8/1 7x for the same period [1] - ROE is expected to improve to 8 7%/9 1%/9 0% in 2024/2025/2026 [1]