Huafon Spandex(002064) 华鑫证券·2024-12-11 13:26Investment Rating - The report assigns a "Buy" rating for Huafeng Chemical (002064.SZ) [2][7] Core Views - The company's performance is under pressure due to the downturn in the adipic acid market, with a 3.51% year-on-year increase in revenue for the first three quarters, totaling 20.15 billion yuan, and a 4.46% increase in net profit [4] - The average price of adipic acid has declined by 5.95% year-on-year, while the price of the main raw material, benzene, has increased by 12.44% in Q3, leading to a narrowing of the price spread for adipic acid products [4] - The company is expanding production in the spandex industry despite the overall market downturn, with a projected increase in market concentration [5] - Huafeng Chemical is planning to acquire 100% equity of Zhejiang Thermoplastic and Zhejiang Synthetic to enhance its product offerings and profitability [6] Summary by Sections Market Performance - The stock price is currently at 8.69 yuan, with a total market capitalization of 431 billion yuan and a 52-week price range of 5.88-8.92 yuan [2] Financial Performance - For Q3, the company reported revenue of 66.29 billion yuan, a decrease of 6.11% year-on-year and 6.47% quarter-on-quarter, with a net profit of 4.96 billion yuan, down 12.88% year-on-year and 40.52% quarter-on-quarter [4] - The company forecasts EPS of 0.57, 0.72, and 0.81 yuan for 2024-2026, with corresponding PE ratios of 15.3, 12.1, and 10.7 [7] Industry Outlook - The spandex industry is seeing increased concentration, with the top four companies holding 58% of the market share, and Huafeng Chemical is positioned to benefit from this trend [5] - The company is actively working on expanding its production capacity, with a new 200,000-ton facility under construction in Chongqing [5] Growth Strategy - The acquisition of Zhejiang Thermoplastic and Zhejiang Synthetic is expected to enhance the company's product portfolio and create new growth opportunities [6]