Layn(SZ:002166) Huaxin Securities·2024-12-13 06:14Investment Rating - The report maintains a "Buy" investment rating for the company [2]. Core Viewpoints - The company is a leader in natural sweeteners and is expanding its synthetic biology capabilities [2]. - The natural sweetener market is experiencing a boom, with a projected CAGR of 13% over the next five years [2][3]. - The company has established a comprehensive supply chain and is deepening its relationships with international clients [2][3]. Summary by Sections 1. Company Overview - The company, based in Guilin, Guangxi, was listed in 2007 and is a leader in the natural sweetener sector [2]. - It has a clear shareholding structure and a stable management team, with significant experience in the industry [23][25]. 2. Industry Analysis - The global plant extraction market was valued at $5.94 billion in 2023, with China accounting for 63% of this market [2]. - The natural sweetener segment is characterized by high safety and cost-effectiveness, benefiting from the growing demand for sugar-free products [2][3]. 3. Business Strategy - The company focuses on a "big single product" strategy, enhancing customer loyalty through customized solutions and expanding its product applications [2][3]. - It has established a procurement mechanism that integrates the company, cooperatives, and farmers, ensuring a stable supply of raw materials [2]. 4. Capacity Expansion - The company plans to launch three major projects in 2024, including a stevia extraction factory with an annual output of 4,000 tons, expected to generate a revenue of 1.4 billion yuan at full capacity [2]. - The synthetic biology project aims to produce high-efficiency raw materials, with an expected annual output of 1,000 tons and a revenue exceeding 1 billion yuan [2]. 5. Financial Projections - The company forecasts EPS of 0.22, 0.33, and 0.38 yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 38, 26, and 22 times [2][3]. - Revenue is expected to grow from 1.49 billion yuan in 2023 to 2.45 billion yuan in 2026, with a significant recovery in net profit anticipated [3].