HBYH(000422) 国信证券·2024-11-05 04:00Investment Rating - The investment rating for Hubei Yihua is "Outperform the Market" [1][3][11] Core Views - The company has seen a significant increase in net profit, with a year-on-year growth of 94.92% in the first three quarters of 2024, reaching 758 million yuan [1][6] - The ongoing asset restructuring is expected to enhance the company's profitability, particularly through the acquisition of 100% equity in Yichang Xinfang Industrial Investment Co., Ltd. from its controlling shareholder [2][10] - The company is focusing on new production capacity and the divestiture of non-performing assets to bolster profits [2][10] Financial Performance Summary - For the first three quarters of 2024, Hubei Yihua achieved operating revenue of 13.52 billion yuan, a slight decrease of 1.34% year-on-year, while net profit attributable to shareholders increased by 94.92% to 758 million yuan [1][6] - The gross margin and net margin for the first three quarters of 2024 were 14.24% and 7.42%, respectively, reflecting an increase of 2.33 percentage points and 2.87 percentage points year-on-year [6] - The company’s sales expense ratio increased to 9.59%, up 0.84 percentage points year-on-year, primarily due to rising sales and R&D expenses [1][6] Future Projections - The company is projected to achieve operating revenues of 18.3 billion yuan in 2024, with net profit expected to reach 1.094 billion yuan, reflecting a significant recovery from previous years [5][11] - Earnings per share (EPS) are forecasted to be 1.03 yuan for 2024, with a corresponding price-to-earnings (PE) ratio of 13 [11][12] Strategic Initiatives - The company is investing in new production projects, including a 460,000-ton/year ammonia project that has reached full capacity, which utilizes cost-effective gasification technology [2][10] - Hubei Yihua is also collaborating with Duofluor to establish a new project for the production of anhydrous hydrofluoric acid, aimed at upgrading its phosphate and fluorine chemical industry [2][10]