Zhejiang Yonghe Refrigerant (SH:605020) Great Wall Securities·2024-06-13 03:01Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [16]. Core Views - The company is expected to benefit from the rising prices in the refrigerant industry, with significant profit growth observed in Q1 2024 due to improved pricing and margin recovery in fluorocarbon chemicals [3][20]. - The implementation of the third-generation refrigerant quota in 2024 is anticipated to tighten supply, leading to further price increases for mainstream refrigerants, which will positively impact the company's performance in the fluorine refrigerant sector [20][23]. - The company is actively investing in R&D, particularly in fluoropolymer materials and fourth-generation refrigerants, which is expected to enhance its competitive position in these markets [6][23]. Financial Performance - The company reported a revenue of 4.37 billion yuan in 2023, with a year-on-year growth of 14.9%, and is projected to reach 5.29 billion yuan in 2024, representing a growth rate of 21.2% [18]. - The net profit attributable to the parent company for 2023 was 184 million yuan, with a significant projected increase to 502 million yuan in 2024, reflecting a year-on-year growth of 173.2% [18]. - The average price of fluorocarbon chemicals in Q1 2024 was 23,096.95 yuan per ton, showing an increase of 8.12% year-on-year and 5.36% quarter-on-quarter, contributing to the recovery of the company's profitability [3]. R&D and Project Development - The company has significantly increased its R&D investment, reaching 90.23 million yuan in 2023, a 73.18% increase from the previous year, and has successfully industrialized several new products [6][21]. - Multiple projects have been successfully launched in 2023, including the production of HFP, FEP, and PTFE, which are expected to bolster the company's production capacity and market position in the fluorochemical industry [21]. Market Outlook - The report highlights a positive outlook for the company's fluoropolymer materials segment, driven by ongoing investments and successful project implementations, which are expected to strengthen its market position [23]. - The tightening supply of third-generation refrigerants is projected to create upward price pressure, benefiting the company's performance in the refrigerant market [20][23].