JHSY(SZ:002597) Huachuang Securities·2025-11-05 07:14Investment Rating - The report maintains a "Strong Buy" rating for Jinhe Industrial, with a target price of 25.80 CNY [2][8]. Core Insights - Jinhe Industrial's Q3 performance was under pressure, with a revenue of 1.099 billion CNY, down 26.91% year-on-year and 3.76% quarter-on-quarter. The net profit attributable to shareholders was 57 million CNY, a decrease of 64.98% year-on-year and 38.49% quarter-on-quarter [2][4]. - The company is expected to recover as demand returns to normal, particularly in the sweetener market, where prices have reached a low point [8][9]. - The report highlights the company's ongoing development in the semiconductor and synthetic biology sectors, which are anticipated to open new growth opportunities [8][9]. Financial Performance Summary - For the first three quarters of 2025, Jinhe Industrial achieved a total revenue of 3.543 billion CNY, a year-on-year decrease of 12.35%. The net profit attributable to shareholders was 391 million CNY, down 4.44% year-on-year [2][4]. - The report provides financial forecasts for 2024 to 2027, indicating a projected revenue of 4.822 billion CNY in 2025, with a year-on-year decline of 9.1% [4][9]. - The expected net profit for 2025 is revised to 518 million CNY, reflecting a decrease of 6.9% compared to previous estimates [8][9]. Market and Business Analysis - The report notes a significant decline in the average prices of key products such as sucralose and acesulfame, which has impacted profitability. The average price of sucralose in Q3 was 20.20 thousand CNY per ton, down 19.19% [8][9]. - Export volumes for sucralose and acesulfame also saw declines of 20.48% and 13.48% respectively, attributed to overseas inventory reduction efforts [8][9]. - The company is actively pursuing growth in electronic-grade chemicals and synthetic biology, with successful project launches expected to enhance its product offerings [8][9].