ZJJH(SH:600160) Guohai Securities·2024-04-29 15:32Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][8][32] Core Insights - The company has significantly improved its performance in Q1 2024, with a revenue of 5.47 billion yuan, representing a year-on-year increase of 19.52% and a quarter-on-quarter increase of 17.82% [3][4] - The net profit attributable to shareholders reached 310 million yuan, a remarkable year-on-year growth of 103.35% and a quarter-on-quarter growth of 57.74% [3][5] - The company is positioned as a leader in the refrigerant market, benefiting from a recovery in refrigerant product prices and a favorable supply-demand balance due to new production quotas for HFCs [6][8] Summary by Sections Financial Performance - In Q1 2024, the company achieved a gross profit margin of 14.75%, up 1.16 percentage points year-on-year and 0.32 percentage points quarter-on-quarter [3][5] - The operating cash flow for Q1 2024 was 465 million yuan, indicating strong cash generation capabilities [28] Product Segmentation - Refrigerant products generated 1.59 billion yuan in revenue, a year-on-year increase of 23.36% and a quarter-on-quarter increase of 10.64% [4][6] - The company’s HFC production quotas are substantial, with HFC-32 quota at 107,800 tons, accounting for 44.99% of the national total, solidifying its market leadership [6][8] Future Projections - Revenue forecasts for 2024, 2025, and 2026 are 24.002 billion yuan, 27.065 billion yuan, and 29.787 billion yuan respectively, with net profits projected at 3.051 billion yuan, 3.982 billion yuan, and 4.975 billion yuan [8][32] - The current stock price corresponds to a PE ratio of 21.22 for 2024, decreasing to 13.01 by 2026, indicating potential for growth [8][32]