Incident: RheinBio announced its 2024 semi-annual results forecast. Net profit for the first half of 2024 is expected to be about 54.2946 million yuan to 65.1536 million yuan, an increase of 50.0% to 80.0% year-on-year. Net profit after deducting non-recurring profit and loss for the first half of 2024 was 45.2546 million yuan to 56.1136 million yuan, an increase of 1041.73% to 1315.69% year-on-year.

The plant extraction business continued to improve, and 24H1's profitability continued to increase. In the first half of 2024, the plant extraction industry in which the company is located continued to improve, and market demand was relatively good. The company is deeply involved in the field of natural sweetness and lays out Luo Han Guo extract, stevia extract, etc. The company's own operating capacity continued to improve in the first half of 2024. Not only did revenue increase significantly compared to the same period last year, but the gross margin of the main business achieved a good recovery, and net profit to mother is expected to increase by 50% to 80% year-on-year.

Among them, 24Q2's performance was even more prominent. According to the company's performance forecast, the company expects to achieve net profit of 27.5 million yuan to 38.36 million yuan in 24Q2, an increase of 69% to 136% over the previous year. It is expected to be higher than the 34% year-on-year growth rate of 24Q1, and is expected to maintain a good upward trend.

Plant extraction products meet consumer demand. The company binds major customers, expands new categories, and future growth can be expected!

At the industry level, according to the “2024 Jingdong Food and Beverage Health Trend White Paper”, natural ingredients and low sugar/0 sugar are one of the current consumer trends.

At the company level, the company actively binds major customers, signed a new cooperation agreement with Finland and Italy for the next five years in 2023, and officially launched in 2024. The cumulative target revenue amount of this agreement is 0.84 billion US dollars, and the minimum cumulative target revenue amount is 0.68 billion US dollars. The company also continues to step up its efforts to develop natural sweetener products in China, relying on competitive advantages such as brand and R&D to accelerate seizing the emerging domestic food and beverage market, and successfully reached cooperation with some mainstream domestic food and beverage brands. In addition to natural sweeteners, the company is actively developing new categories such as industrial hemp. The annual processing capacity of the company's industrial hemp extraction plant is the largest industrial hemp extraction plant in the United States. In 2024, the company decided to use the atomization field as the key development direction for the industrial hemp business. Through collaboration with Chen Hao's team, relying on its brand operation experience and channel resources, the company's CBD derivative conversion technology will accelerate the release of factory production capacity and strive to achieve the performance goal of drastically reducing losses in the industrial hemp project in 2024.

Profit forecast: The company's 24-26 revenue is expected to be 1.912/2.409/2.915 billion yuan, and net profit to mother is 0.193/0.263/0.346 billion yuan, up 134%/36%/31% year-on-year. The company's natural sweetener business is growing steadily. It is optimistic that large orders for natural sweeteners will continue to be released, and it is confident that the industrial hemp market will grow rapidly in the future, maintaining a “buy” rating.

Risk warning: raw material procurement risk; risk of reliance on major customers; policy risk; there is still uncertainty about the implementation period of industrial hemp extract for specific policies in the food and beverage sector; adjustments in national export policies will have a great impact on the operations of export-oriented enterprises; industrial hemp and intermediate marijuana, recreational cannabis/drug marijuana; resolutely oppose the legalization of recreational marijuana; related business or policy changes/law/business management/natural/R&D operation risks There is uncertainty about the implementation progress and effects of specific cooperation; China has never approved the use of industrial hemp for use in industrial hemp Medical and food additives; the performance forecast is the result of preliminary calculations by the company's finance department. The specific financial data is subject to the “2024 Semi-Annual Report” disclosed by the company