Shengquan Group(605589) 民生证券·2024-10-27 09:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook on its growth potential [3]. Core Views - The company achieved a significant increase in net profit by 48% in the third quarter of 2024, with total revenue for the first three quarters reaching 7.152 billion yuan, a year-on-year growth of 6.87% [1][2]. - The sales volume of phenolic resin increased by 3.6%, while casting resin sales grew by 13.1% in the first three quarters [2]. - The company is making steady progress in its new business areas, including the production of high-value-added products from its biomass project [2]. - The forecast for net profit from 2024 to 2026 is projected to be 878 million yuan, 1.238 billion yuan, and 1.729 billion yuan, respectively, with corresponding EPS of 1.04 yuan, 1.46 yuan, and 2.04 yuan [2][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported total revenue of 7.152 billion yuan, a 6.87% increase year-on-year, and a net profit of 581 million yuan, reflecting a 20.53% growth [1]. - In the third quarter alone, revenue was 2.526 billion yuan, up 8.58% year-on-year, with net profit reaching 249 million yuan, a 47.77% increase [1]. Product Sales - The sales volume of phenolic resin was 377,700 tons, up 3.64%, generating revenue of 2.742 billion yuan, a 7.60% increase [2]. - The sales volume of casting resin reached 130,900 tons, a 13.13% increase, although revenue declined by 3.08% to 1.131 billion yuan [2]. - Electronic chemicals saw a sales volume of 49,600 tons, with revenue of 882 million yuan, a 1.77% increase [2]. New Business Development - The company has successfully launched its special electronic resin business, with a production capacity of 1,000 tons of functionalized special electronic resin now operational [2]. - The biomass project in Daqing has started producing high-value products, contributing to the company's revenue growth [2]. Future Outlook - The company is expected to see continued growth in its traditional resin business, electronic chemicals, and biomass projects, with projected earnings per share (EPS) increasing significantly over the next few years [2][4].