Cathay Biotech (688065) 长城证券·2024-09-06 06:47Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [12]. Core Views - The company has shown significant revenue growth in the first half of 2024, with a 40.16% year-on-year increase in revenue, reaching 1.444 billion yuan [1][2]. - The net profit for the same period was 247 million yuan, reflecting a slight increase of 2.31% year-on-year, while the net profit excluding non-recurring items was 240 million yuan, up 11.34% year-on-year [1][2]. - The company is expanding its biomanufacturing capacity, which is expected to enhance its market share and profitability [5]. Financial Performance Summary - Revenue for 2024 is projected to be 3.087 billion yuan, with a year-on-year growth rate of 46.0% [1]. - The net profit for 2024 is estimated at 549 million yuan, representing a 49.8% increase compared to 2023 [1]. - The company's gross margin for the first half of 2024 was 31.22%, an increase of 1.49 percentage points from the same period in 2023 [2]. - The company’s operating cash flow for the first half of 2024 increased by 34.33% year-on-year, amounting to 435 million yuan [2]. Production Capacity and Market Position - The company has a total production capacity of 115,000 tons for its biomanufactured products, including long-chain dicarboxylic acids and bio-based polyamides [1][5]. - In the first half of 2024, revenue from long-chain dicarboxylic acids reached 1.314 billion yuan, accounting for 91.01% of total revenue, with a year-on-year increase of 39.94% [5]. - The company is recognized as a global leader in the supply of biomanufactured long-chain dicarboxylic acids, leveraging its technological advantages to expand its market presence [5].