Shengquan Group(605589) 国海证券·2024-11-19 15:46Investment Rating - Buy rating (initiated coverage) [2] Core Views - PPO capacity gradually released, Q3 net profit attributable to parent company increased QoQ [2] - Phenolic resin production declined QoQ, but net profit increased QoQ [5] - Rich pipeline of electronic chemicals and new energy materials projects, profitability expected to further improve [6] - Daqing project completed technical transformation, capacity ramp-up contributing incremental growth [10] Financial Performance - 2024 Q1-Q3 revenue: 7.152 billion yuan, +6.87% YoY; net profit attributable to parent company: 581 million yuan, +20.53% YoY [3] - 2024 Q3 revenue: 2.526 billion yuan, +8.58% YoY, +1.42% QoQ; net profit attributable to parent company: 249 million yuan, +47.77% YoY, +28.56% QoQ [4] - 2024 Q3 gross margin: 23.14%, +0.52pct YoY, -0.26pct QoQ; net profit margin: 10.12%, +2.75pct YoY, +2.18pct QoQ [4] - 2024 Q3 phenolic resin production: 121,200 tons, -15.12% QoQ; revenue: 896 million yuan, -13.06% QoQ [6] - 2024 Q3 foundry resin production: 47,000 tons, -1.61% QoQ; revenue: 402 million yuan, -3.84% QoQ [6] - 2024 Q3 electronic chemicals production: 17,300 tons, +2.87% QoQ; revenue: 286 million yuan, -12.11% QoQ [6] Project Updates - 1,000-ton functionalized polyphenylene project started production in June 2024, currently in customer verification stage with abundant intended orders [6] - 300-ton silicon carbon anode porous carbon capacity built by September 2024, 1,000-ton project under construction [6] - Daqing project completed transformation, started production in June 2024, capacity utilization rate exceeded 70% by September 2024 [10] Forecasts - 2024-2026 revenue forecast: 9.873 billion, 12.187 billion, 14.274 billion yuan [10] - 2024-2026 net profit attributable to parent company forecast: 842 million, 1.298 billion, 1.489 billion yuan [10] - 2024-2026 PE ratio: 23x, 15x, 13x [10] - 2024-2026 ROE: 8%, 11%, 12% [14] - 2024-2026 gross margin: 23%, 25%, 25% [14] - 2024-2026 revenue growth rate: 8%, 23%, 17% [14] - 2024-2026 net profit growth rate: 7%, 54%, 15% [14]