Sobute New Materials (603916) 华创证券·2024-11-16 16:43Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 8.9 yuan [1]. Core Insights - The company experienced a revenue decline of 3.9% year-on-year in the first three quarters of 2024, totaling 2.476 billion yuan, while net profit attributable to shareholders fell by 44.43% to 79 million yuan [1]. - The decline in net profit is primarily attributed to a decrease in gross margin, which was 32.9% for Q1-Q3 2024, down 2.1 percentage points from the same period last year [1]. - The average procurement price of ethylene oxide increased by 5.63% compared to the previous year, further impacting gross margins [1]. Revenue Breakdown - High-performance water-reducing agents accounted for 53% of revenue, while functional materials saw a revenue increase of 29% year-on-year [2]. - Revenue from high-performance water-reducing agents was 1.304 billion yuan, down 12% year-on-year, with a sales volume of 740,000 tons, up 2% [2]. - Functional materials generated 463 million yuan in revenue, with a sales volume of 220,000 tons, up 19% year-on-year, driven by increased demand from the wind power sector [2]. Expense Analysis - The period expense ratio increased by 1.03 percentage points year-on-year to approximately 26.2% for Q1-Q3 2024 [3]. - The sales, management, R&D, and financial expense ratios were 11.2%, 8.6%, 4.7%, and 1.7%, respectively, with increases in sales and management expenses [3]. Financial Forecast - The company is projected to have earnings per share (EPS) of 0.28, 0.35, and 0.46 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 28x, 22x, and 17x [4]. - The forecasted total revenue for 2024 is 3.455 billion yuan, with a net profit of 122 million yuan, reflecting a year-on-year decline of 24.1% [4].