Cathay Biotech (688065) 长城证券·2024-05-29 03:31Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [12]. Core Insights - The company's performance showed significant improvement in Q1 2024, with a year-on-year revenue increase of 35.43% and a net profit increase of 83.25% [3]. - The partnership with China Merchants Group is expected to accelerate the application of bio-based polyamide products, enhancing the company's market position [4][6]. - The company is focusing on expanding its production capacity for long-chain dicarboxylic acids and bio-based polyamides, which is anticipated to benefit its long-term growth [6]. Financial Summary - In 2023, the company reported a revenue of 2,114 million yuan, a decrease of 13.39% year-on-year, and a net profit of 367 million yuan, down 33.75% year-on-year [2][3]. - For Q1 2024, the company achieved a revenue of 685 million yuan, with a year-on-year growth of 35.43% and a net profit of 105 million yuan, reflecting a substantial recovery [3]. - The projected revenues for 2024, 2025, and 2026 are 3,087 million yuan, 5,219 million yuan, and 7,076 million yuan, respectively, with corresponding net profits of 549 million yuan, 710 million yuan, and 931 million yuan [6][7]. Operational Developments - The company has completed the construction of a 30,000-ton long-chain dicarboxylic acid and a 20,000-ton long-chain polyamide project, laying a solid foundation for downstream applications [6]. - A joint venture with 3P.COM from South Korea has been established to develop applications for thermoplastic bio-based polyamide composites in various sectors [6].