JHSY(SZ:002597) Huaxin Securities·2025-09-11 14:29Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [10]. Core Insights - The report highlights a recovery in the sucralose market, with the leading sugar substitute company experiencing a rebound in performance. The company holds approximately 37% of the domestic sucralose production capacity, benefiting from a significant price increase from around 120,000 yuan/ton in the first half of 2024 to 230,000 yuan/ton in 2025, nearly doubling year-on-year. This price surge has led to an 18.1 percentage point increase in the gross margin of the company's food additive business, reaching 45.20% [6][10]. - The company has optimized its expense ratios, resulting in a substantial improvement in cash flow. The net cash flow from operating activities was 137 million yuan, a slight decline of 5.83% year-on-year, while cash outflow from investment activities narrowed significantly by 96.42% due to increased cash recovery from investments [6]. - The company is accelerating its strategic layout in emerging businesses, including the semiconductor materials sector and new energy materials. Key projects such as the production of electronic-grade hydrogen peroxide and lithium salt precursors have been successfully launched, enhancing the company's value chain and supporting downstream applications [7][9]. Summary by Sections Financial Performance - In the first half of 2025, the company reported total revenue of 2.444 billion yuan, a year-on-year decrease of 3.73%, while the net profit attributable to shareholders was 334 million yuan, reflecting a year-on-year increase of 35.29%. The second quarter alone saw revenue of 1.142 billion yuan, down 13.78% year-on-year and 12.22% quarter-on-quarter, with a net profit of 92 million yuan, down 21.70% year-on-year and 61.85% quarter-on-quarter [5]. Profit Forecast - The company is expected to see a gradual release of performance as the sweetener market recovers. Forecasted net profits for 2025-2027 are 1.048 billion yuan, 1.265 billion yuan, and 1.555 billion yuan, respectively, with corresponding price-to-earnings ratios of 12.3, 10.2, and 8.3 times [10][12].