Cathay Biotech (688065) Guohai Securities·2024-11-14 23:40Investment Rating - The report maintains a "Buy" rating for the company [2][8] Core Insights - The company's production capacity for sebacic acid is ramping up, leading to a significant year-on-year increase in profits for Q3 2024 [3][4] - In the first three quarters of 2024, the company achieved operating revenue of 2.215 billion yuan, a year-on-year increase of 41.49%, and a net profit attributable to shareholders of 345 million yuan, up 9.97% year-on-year [3] - The company is focusing on expanding its production capacity and enhancing its position in the polyamide industry chain [5][6] Summary by Sections Financial Performance - In Q3 2024, the company reported operating revenue of 771 million yuan, a year-on-year increase of 44.06%, and a net profit attributable to shareholders of 98 million yuan, up 35.69% year-on-year [4] - The gross profit margin for Q3 2024 was 34.03%, an increase of 7.97 percentage points year-on-year [4] - The net cash flow from operating activities for the first three quarters was 676 million yuan, a year-on-year increase of 27.48% [3] Production Capacity and Strategy - The company currently has an annual production capacity of 115,000 tons for long-chain dicarboxylic acids and 100,000 tons for bio-based polyamides [5] - Ongoing projects include a 500,000-ton bio-based pentamethylenediamine project and a 900,000-ton bio-based polyamide project [5] - The company is recognized as a global leader in the large-scale production of new materials using biological manufacturing [5] Future Projections - The report adjusts the profit forecast for the company, estimating operating revenues of 3.107 billion yuan, 4.901 billion yuan, and 6.937 billion yuan for 2024, 2025, and 2026 respectively [8] - The net profit attributable to shareholders is projected to be 505 million yuan, 707 million yuan, and 915 million yuan for the same years [8]