SMIC(600810) 国泰君安·2024-11-13 07:24Investment Rating - The report maintains an "Accumulate" rating for the company, with a target price raised to 9.25 CNY from the previous 7.80 CNY [2][9]. Core Views - The company is focusing on its core business and actively breaking through in the upstream and downstream industrial chains, despite facing pressure on profitability due to the industry's downturn [3][9]. - The company has reported a total revenue of 10.206 billion CNY for the first three quarters of 2024, a year-on-year increase of 8.21%, while the net profit attributable to shareholders decreased by 62.09% to 26.6721 million CNY [9]. - The company is expanding its product offerings and has initiated projects in key raw materials, including adiponitrile and hydrogen ammonia, while also entering the civilian sector for PA66 [9]. Financial Summary - The company’s total revenue for 2022 was 14.572 billion CNY, which decreased to 12.919 billion CNY in 2023, reflecting an 11.3% decline [10]. - The net profit attributable to shareholders dropped significantly from 399 million CNY in 2022 to 123 million CNY in 2023, marking an 81.3% decrease [10]. - The earnings per share (EPS) for 2024 is projected to be 0.05 CNY, down from 0.12 CNY in 2023, with a recovery expected in subsequent years [10][12]. Industry Outlook - The report indicates that the industry is at a low point in terms of economic conditions, which is impacting the company's performance [3][9]. - The company is strategically positioning itself to meet the growing demand in the Southeast Asian and North American tire manufacturing markets by establishing a differentiated fiber project in Thailand [9].