Longyan Zhuoyue New Energy (688196) 民生证券·2025-01-17 09:47Investment Rating - The report maintains a "Recommend" rating for the company [4][6] Core Views - The company's 2024 annual performance is expected to show significant growth, with a projected net profit attributable to the parent company of approximately 1.5 billion yuan, a year-on-year increase of 90.81% [1] - The growth is attributed to the recovery of international biodiesel prices in Q4 2024, with European Ucome FOB prices increasing by 9.65% and Southeast Asian biodiesel FOB prices rising by 16.01% compared to Q3 2024 [2] - The company's Singapore subsidiary is expected to contribute to future growth, with a planned annual production capacity of 200,000 tons of biodiesel, with the first phase of 100,000 tons expected to be operational by Q1 2025 [3] Financial Performance and Forecast - The company's revenue is expected to grow from 2,812 million yuan in 2023 to 5,345 million yuan in 2026, with a CAGR of 18.1% from 2024 to 2026 [5] - Net profit attributable to the parent company is forecasted to increase from 79 million yuan in 2023 to 399 million yuan in 2026, with a CAGR of 90.3% from 2024 to 2026 [5] - EPS is projected to rise from 0.66 yuan in 2023 to 3.33 yuan in 2026, with a corresponding PE ratio decreasing from 52 in 2023 to 10 in 2026 [5] Industry and Market Analysis - Singapore's biofuel market is emerging as a significant player, with biofuel usage reaching 106,500 tons in December 2024, a 135.10% increase from the beginning of the year [3] - The company's strategic focus on Singapore's biofuel market is expected to capitalize on the region's growing demand for marine fuel, with biofuel accounting for 2.2% of total fuel usage in Singapore by the end of 2024 [3] Valuation and Investment Recommendation - The company's valuation is supported by its strong growth prospects, with a projected PE ratio of 27 in 2024, decreasing to 10 by 2026 [4][5] - The report recommends the company based on its favorable business outlook, expanding product margins, and ongoing overseas base construction [4]