JHSY(SZ:002597) Huachuang Securities·2024-04-17 17:01Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 24.32 CNY, compared to the current price of 21.15 CNY [1]. Core Views - The company's performance has been negatively impacted by a downturn in the market, but there are signs of demand recovery, particularly in the export of sucralose [1]. - The report highlights a significant decline in revenue and net profit for 2023, with total revenue at 5.311 billion CNY, down 26.75% year-on-year, and net profit at 704 million CNY, down 58.46% year-on-year [1]. - The report anticipates a restructuring of the industry landscape due to increased competition among leading companies in the sucralose market [1]. Financial Summary - Revenue: The company achieved total revenue of 5.311 billion CNY in 2023, with a year-on-year decline of 26.75%. The projected revenue for 2024 is 6.177 billion CNY, reflecting a growth rate of 16.3% [7]. - Net Profit: The net profit for 2023 was 704 million CNY, a decrease of 58.46% year-on-year. The forecasted net profit for 2024 is 868 million CNY, indicating a growth of 23.3% [7]. - Earnings Per Share (EPS): The EPS for 2023 was 1.24 CNY, with projections of 1.52 CNY for 2024 [7]. - Price-to-Earnings Ratio (PE): The current market valuation corresponds to a PE of 17, with future projections of 14 for 2024, 11 for 2025, and 9 for 2026 [7]. - Market Capitalization: The total market capitalization is reported at 120.55 billion CNY [2]. Segment Performance - Food Additives: Revenue from the food additives segment was 2.890 billion CNY, down 36.60% year-on-year, with a gross margin of 32.76%, a decrease of 15.01 percentage points [1]. - Bulk Chemicals: The bulk chemicals segment generated revenue of 1.771 billion CNY, down 13.73% year-on-year, with a gross margin of 10.21%, a decrease of 4.35 percentage points [1]. - Sucralose Exports: The export volume of sucralose increased from 3,538 tons in Q1 to 4,868 tons in Q4, with a year-on-year growth rate improving from -9.52% to +34.63% [1]. Future Outlook - The company is expected to see a recovery in net profit, with projections of 868 million CNY for 2024, 1.081 billion CNY for 2025, and 1.350 billion CNY for 2026 [1]. - The report notes that the ongoing expansion of production capacity by leading companies in the sucralose market may lead to a restructuring of the competitive landscape, potentially benefiting the company in the long term [1].