Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to 35% [7][12]. Core Insights - The company has shown a significant recovery in Q1 2025, with expected net profit growth of 78% to 94% year-over-year, driven by a rebound in sweetener prices [8]. - The company’s 2024 annual report revealed a revenue of RMB 5.303 billion, a slight decrease of 0.15% year-over-year, and a net profit of RMB 557 million, down 21% year-over-year [8]. - The company is expected to benefit from the successful launch of its new production capacity and the recovery of sweetener prices, which will enhance profit margins moving forward [13]. Company Overview - The company operates primarily in the food and beverage sector, with a market capitalization of RMB 13.601 billion and a share price of RMB 23.78 as of April 17, 2025 [1]. - The major shareholder is Anhui Jinrui Investment Group Co., Ltd., holding 43.95% of the shares [1]. Financial Performance - The company’s revenue for 2023 was RMB 5.311 billion, with projections of RMB 5.303 billion for 2024 and RMB 6.997 billion for 2025 [15]. - The net profit is projected to recover to RMB 865 million in 2025, reflecting a year-over-year increase of 55% [11][15]. - The company’s earnings per share (EPS) is expected to rise from RMB 0.98 in 2024 to RMB 1.52 in 2025 [11]. Product Mix - The company’s product portfolio consists of 53.2% food additives, 35.1% bulk chemical raw materials, and 4.4% functional chemical intermediates [3]. Institutional Ownership - Institutional investors hold 8.4% of the circulating A-shares, while general corporations hold 46.1% [4].

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 26.85 RMB [8][9]. Core Views - The company reported a revenue of 5.3 billion RMB in 2024, remaining stable year-on-year, but the net profit attributable to shareholders decreased by 21% to 560 million RMB [1]. - The decline in net profit is attributed to pressures in the bulk chemical sector and increased unit costs due to the suspension of sucralose production [1]. - The report anticipates a recovery in the sweetener market, supported by supply-side and cost-side factors, which could enhance future profitability [1][3]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 5.3 billion RMB, with a net profit of 560 million RMB, reflecting a year-on-year decrease of 21% [1]. - The fourth quarter of 2024 saw a revenue of 1.26 billion RMB, up 4% year-on-year but down 16% quarter-on-quarter [1]. - The company plans to distribute a cash dividend of 0.83 RMB per share, with a payout ratio of 82% [1]. Market Dynamics - The sweetener prices began to rise in the second half of the previous year due to cost support and supply-side coordination [2]. - The report notes a 14% year-on-year decline in sucralose exports in the first two months of 2025, indicating ongoing market challenges [3]. Project Developments - The company successfully launched several projects, including a 600,000-ton sulfuric acid production facility and an 80,000-ton electronic-grade hydrogen peroxide project, which are expected to contribute to future profits [4]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders is 1.02 billion RMB for 2025, 1.26 billion RMB for 2026, and 1.49 billion RMB for 2027, reflecting growth rates of 83%, 24%, and 18% respectively [5]. - The report assigns a 15x PE ratio for 2025, leading to a target price of 26.85 RMB, which is an increase from the previous target of 25.06 RMB [5].