From 2021 to 2024H1, the company achieved revenues of 15.847 billion yuan, 20.036 billion yuan, 14.554 billion yuan, and 7.285 billion yuan respectively, with year-on-year changes of +57.48%, +26.43%, -27.36%, and +1.07%.
According to the Wise News App, Haitong Securities released a research report stating that they have initiated coverage on Dongyue Group (00189) with an "outperform the market" rating. The forecasted net income attributable to the parent company for 2024-2026 is 0.907 billion yuan, 1.476 billion yuan, and 2.012 billion yuan respectively, corresponding to EPS values of 0.52 yuan, 0.85 yuan, and 1.16 yuan. Based on the valuation of comparable companies in the industry, the bank has given a PE ratio valuation of 16-18 times for 2024, with a corresponding reasonable value range of 8.32-9.36 yuan. Calculated at an exchange rate of 1 Hong Kong dollar to 0.92 Chinese yuan, the corresponding reasonable value range is 9.04-10.17 Hong Kong dollars.
The main points of Haitong Securities are as follows:
The net income after deducting non-recurring items in 2024H1 was 0.233 billion yuan, a decrease of 6.70% compared to the same period.
From 2021 to 2024H1, the company achieved revenues of 15.847 billion yuan, 20.036 billion yuan, 14.554 billion yuan, and 7.285 billion yuan respectively, with year-on-year changes of +57.48%, +26.43%, -27.36%, and +1.07%. The net income after deducting non-recurring items was 1.978 billion yuan, 2.625 billion yuan, 0.594 billion yuan, and 0.233 billion yuan respectively, with year-on-year changes of +200.49%, +32.70%, -77.38%, and -6.70%. The company's performance decline in 2023 was mainly due to the lower prosperity of the fluorosilicon industry, increased product supply but lower-than-expected downstream demand, and significant price decline. In 2024H1, the revenue growth of the company was mainly due to the significant increase in refrigerant product prices. Additionally, the company's sales gross margin increased by 4.1 percentage points to 19.83% year-on-year; sales net margin increased by 2.54 percentage points to 5.43%.
The company benefited from the increase in refrigerant prices.
According to Baichuan Yingfu, as of October 17, 2024, the average market price of R22 was 30,500 yuan per ton, an increase of 56.41% compared to January 29, with a year-on-year increase of 54.43%; the market average price of R32 was 38,000 yuan per ton, a 1.33% increase compared to September 29, with a year-on-year increase of 126.87%; the market average price of R125 was 35,000 yuan per ton, a weekly increase of 2.94%, a monthly increase of 18.64%, and a year-on-year increase of 34.62%; the market average price of R134a was 34,000 yuan per ton, a monthly increase of 3.03%, with a year-on-year increase of 24.77%.
Significant technological innovation achievements.
In 2023, the company introduced a total of 101 new brand products. A large number of high-end new materials products entered the market for sample testing or small-scale supply, laying a solid foundation for the company to enhance industrial height and competitiveness; 81 new patents were authorized, totaling 620 authorized patents currently; 22 standards were issued, including 2 national standards, 2 industry standards, 1 local standard, and 17 group standards. The company has currently led the release of a total of 127 standards. The R&D expenditure in 2023 was approximately 0.935 billion yuan, accounting for 6.45% of the revenue.
