JHSY(SZ:002597) Huachuang Securities·2024-04-30 10:32Investment Rating - The report maintains a "Strong Buy" rating for Jinhe Industrial (002597) with a target price of 30.40 CNY, compared to the current price of 24.39 CNY [1]. Core Views - The company's Q1 2024 earnings may have bottomed out, with improving demand expected to drive a recovery in industry conditions [1]. - The report highlights that the prices of key products have shown mixed trends, indicating potential stabilization in profitability [1]. - Strong export demand for sucralose is anticipated to support price recovery, as recent data shows significant increases in export volumes [1]. - The ongoing progress of the Dingyuan Phase II project and the initiation of synthetic biology product reserves are expected to bolster long-term growth [1]. Financial Summary - For Q1 2024, Jinhe Industrial reported revenue of 1.213 billion CNY, a year-on-year increase of 12.30% and a quarter-on-quarter increase of 0.36% [1]. - The net profit attributable to shareholders was 129 million CNY, reflecting a year-on-year decrease of 47.36% and a quarter-on-quarter decrease of 8.14% [1]. - The report projects net profits for 2024, 2025, and 2026 to be 868 million CNY, 1.081 billion CNY, and 1.350 billion CNY, respectively, with corresponding P/E ratios of 16x, 13x, and 10x [1][5].