JHSY(SZ:002597) Guohai Securities·2024-04-18 00:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][26]. Core Views - The company's performance in 2023 has been under pressure, primarily due to a decline in the prices of its main products in both the food additives and bulk chemicals segments, leading to a significant drop in revenue and profit [22][26]. - Despite the short-term challenges, the company is expected to benefit from the production of new products and projects, particularly in the sweetener segment, which may improve profitability in the future [26][24]. Financial Performance Summary - In Q4 2023, the company achieved revenue of 1.218 billion yuan, a year-on-year decrease of 29.29% and a quarter-on-quarter decrease of 14.15%. The net profit attributable to shareholders was 141 million yuan, down 61.20% year-on-year and 12.24% quarter-on-quarter [2][24]. - For the full year 2023, the company reported total revenue of 5.311 billion yuan, a decline of 26.75% compared to the previous year, and a net profit of 704 million yuan, down 58.46% year-on-year [22][26]. - The company's return on equity (ROE) for 2023 was 10%, with a projected increase to 12% by 2026 [26][66]. Segment Performance - The food additives segment saw a significant decline in average prices for key products such as aspartame and sucralose, with price drops of 35.30% and 56.06% respectively in 2023 [22][24]. - The bulk chemicals segment experienced mixed results, with hydrogen peroxide prices increasing by 8.97%, while melamine prices fell by 20.48% [22][24]. - The overall gross margin for food additives and bulk chemicals decreased to 32.76% and 10.21% respectively in 2023, reflecting the impact of lower selling prices [22][26]. Future Outlook - The company is expected to see revenue growth in the coming years, with projections of 6.187 billion yuan in 2024, 6.944 billion yuan in 2025, and 7.704 billion yuan in 2026 [26][66]. - The net profit is anticipated to recover to 800 million yuan in 2024 and reach 1.212 billion yuan by 2026, indicating a positive trend in profitability [26][66].