Investment Rating - Buy (Maintained) [2] Core Views - The company reported a revenue of RMB 3.477 billion (yoy -5.8%) and a net profit of RMB 374 million (yoy -11.2%) for the first half of 2024 [2] - The decline in revenue is primarily due to reduced orders in the pharmaceutical and biopharmaceutical sectors, impacted by external economic conditions [2] - The company's gross profit margin improved to 29.58%, up 2.25 percentage points year-on-year [2] - EBITDA stood at RMB 556 million (yoy -3%) [2] Business Analysis Revenue Breakdown - Pharmaceutical and Biopharmaceutical: RMB 660 million (yoy -49.7%) [3] - Electronic Chemicals: RMB 660 million (yoy +0.4%) [3] - Power Battery Materials: RMB 650 million (yoy -40.4%) [3] - Chemical: RMB 700 million (yoy -9.0%) [3] - Oil & Gas Refining: RMB 460 million (yoy +108.2%) [3] - Daily Chemicals: RMB 90 million (yoy -50%) [3] - Others: RMB 240 million (yoy +236.0%) [3] New Orders - Total new orders: RMB 3.164 billion [3] - Electronic Chemicals: RMB 170 million (yoy -53.4%) [3] - Chemical: RMB 530 million (yoy -27.0%) [3] - Daily Chemicals: RMB 300 million (yoy +40%) [3] - Power Battery Materials: RMB 1.02 billion (yoy +23.2%) [3] - Oil & Gas Refining: RMB 380 million (yoy +21.8%) [3] - Pharmaceutical and Biopharmaceutical: RMB 590 million (yoy -71.0%) [3] - Others: RMB 160 million (yoy -61.7%) [3] Backlog - Total backlog: RMB 8.776 billion [3] Overseas Business - Overseas sales accounted for 56% of total revenue, 70% of the backlog, and 76% of new orders [3] - The company is actively expanding in the clean energy sector, particularly in green ammonia, with a projected global market size of USD 5.48 billion by 2030 [3] Financial Projections - Expected net profit for 2024-2026: RMB 904 million, RMB 1.037 billion, and RMB 1.253 billion, respectively [3] - Corresponding PE ratios: 5x, 4x, and 4x [3] Key Financial Metrics Revenue Growth - 2023A: 13.47% [5] - 2024E: 2.90% [5] - 2025E: 10.59% [5] - 2026E: 18.74% [5] Net Profit Growth - 2023A: 26.21% [5] - 2024E: 7.00% [5] - 2025E: 14.75% [5] - 2026E: 20.81% [5] ROE - 2023A: 19.27% [5] - 2024E: 17.10% [5] - 2025E: 16.40% [5] - 2026E: 16.54% [5] EPS - 2023A: RMB 0.696 [5] - 2024E: RMB 0.745 [5] - 2025E: RMB 0.855 [5] - 2026E: RMB 1.033 [5] Operating Cash Flow per Share - 2023A: RMB 0.553 [5] - 2024E: RMB 0.599 [5] - 2025E: RMB 0.936 [5] - 2026E: RMB 0.978 [5] Balance Sheet Highlights Total Assets - 2023A: RMB 8.932 billion [6] - 2024E: RMB 9.897 billion [6] - 2025E: RMB 11.366 billion [6] - 2026E: RMB 13.365 billion [6] Total Liabilities - 2023A: RMB 4.541 billion [6] - 2024E: RMB 4.603 billion [6] - 2025E: RMB 5.034 billion [6] - 2026E: RMB 5.780 billion [6] Shareholders' Equity - 2023A: RMB 4.382 billion [6] - 2024E: RMB 5.286 billion [6] - 2025E: RMB 6.323 billion [6] - 2026E: RMB 7.576 billion [6] Profitability Ratios Gross Margin - 2023A: 27.9% [6] - 2024E: 29.7% [6] - 2025E: 29.9% [6] - 2026E: 30.0% [6] Operating Margin - 2023A: 12.5% [6] - 2024E: 13.9% [6] - 2025E: 14.3% [6] - 2026E: 14.5% [6] Net Margin - 2023A: 11.5% [6] - 2024E: 11.9% [6] - 2025E: 12.4% [6] - 2026E: 12.6% [6] Cash Flow Analysis Operating Cash Flow - 2023A: RMB 671 million [6] - 2024E: RMB 727 million [6] - 2025E: RMB 1.136 billion [6] - 2026E: RMB 1.186 billion [6] Investing Cash Flow - 2023A: RMB -408 million [6] - 2024E: RMB -67 million [6] - 2025E: RMB -68 million [6] - 2026E: RMB -66 million [6] Financing Cash Flow - 2023A: RMB 507 million [6] - 2024E: RMB 4 million [6] - 2025E: RMB -3 million [6] - 2026E: RMB -3 million [6] Valuation Metrics P/E Ratio - 2023A: 5.47x [5] - 2024E: 5.11x [5] - 2025E: 4.46x [5] - 2026E: 3.69x [5] P/B Ratio - 2023A: 1.05x [5] - 2024E: 0.87x [5] - 2025E: 0.73x [5] - 2026E: 0.61x [5]
森松国际：港股公司点评：全球化布局彰显公司发展韧性