Adisseo(SH:600299) Great Wall Securities·2024-04-07 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [14]. Core Views - The company's performance in 2023 was significantly impacted by a decline in the prices of its main products and impairment provisions, leading to a 95.82% year-on-year drop in net profit [2][6]. - Despite the challenges, the company's profitability began to improve in the second half of 2023, driven by a rebound in methionine prices and increased sales volume [2][6]. - The company is expanding its production capacity, including a new solid methionine project in Quanzhou, which is expected to enhance its competitive advantage in the industry [7]. Financial Summary - In 2023, the company's operating revenue was 13,184 million yuan, a decrease of 9.3% year-on-year, while the net profit attributable to the parent company was 52 million yuan, down 95.82% [1][2]. - The company's cash flow from operating activities increased by 59.89% year-on-year, reaching 2,764 million yuan, due to strict cash and working capital management [2][9]. - The report projects future revenues and profits, estimating operating revenues of 13,789 million yuan, 14,831 million yuan, and 16,284 million yuan for 2024, 2025, and 2026 respectively, with net profits of 383 million yuan, 801 million yuan, and 1,093 million yuan for the same years [7][9]. Business Segments - The functional products segment experienced a revenue decline of approximately 15%, while the specialty products segment saw an 8% increase in revenue for the year [2][6]. - The gross margin for the specialty products business improved to 49% in Q4 2023, indicating a recovery in profitability [2][6]. - The company plans to permanently close its solid methionine production line in France to enhance overall cost competitiveness in its methionine business [7].