HIUV(SH:688680) Xin Lang Cai Jing·2025-04-21 12:30Core Viewpoint - The company reported significant declines in revenue and net profit for 2024 and Q1 2025, primarily due to pressure on its main film business and substantial asset impairment losses [1][3]. Financial Performance - In 2024, the company achieved revenue of 2.591 billion yuan, a year-on-year decrease of 46.81%, with a net loss attributable to shareholders of 558 million yuan, resulting in a loss per share of 6.65 yuan [1]. - For Q1 2025, revenue was 316 million yuan, down 64.02% year-on-year and 41.37% quarter-on-quarter, with a net loss of 57 million yuan and a loss per share of 0.69 yuan, which was below expectations [1]. Business Trends - The film business faced significant challenges in 2024, with a drastic price drop leading to a sales average of 5.9 yuan per unit, a decrease of 31% year-on-year, and a revenue decline of 48% [1]. - The company opted to abandon low-priced orders, resulting in a decrease in shipment volume and market share, with 2024 sales volume at 420 million square meters, down 25% year-on-year [1]. - Due to falling prices of raw materials and film, some production lines were shut down, leading to a substantial asset impairment loss of 208 million yuan [1]. - The company is implementing a conservative strategy to optimize its asset structure, which has led to a reduction in accounts receivable risk and positive operating cash flow since Q2 2024 [1]. New Business Opportunities - The automotive materials business is expected to become a second growth curve for the company, with 2024 revenue of 20 million yuan, a year-on-year increase of 504.52%, and a gross margin of 28.22% [2]. - The company’s products in this segment include liquid crystal dimming films, XPO leather, and PVE glass glue films, all of which are proprietary technologies [2]. - The recent launch of the Zhiji L6 model, which uses the company's liquid crystal dimming film, indicates market acceptance and potential for further penetration into mid- to low-end models [2]. - The company anticipates batch supply of dimming films and XPO leather products in 2025, with PVE films expected to be promoted in the second half of the year [2]. Profit Forecast and Valuation - Due to low film prices and intense industry competition, the company’s ability to recover profits in the short term is limited, and the automotive materials business is still in its early stages with significant initial R&D and sales expenses [3]. - The net profit forecast for 2025 has been revised down by 286.5% to a loss of 291 million yuan, with an initial 2026 profit forecast of a loss of 65 million yuan [3]. - The target price has been reduced by 18.1% to 45.3 yuan, corresponding to 1.3 and 1.1 times P/S for 2025 and 2026, respectively, indicating a potential upside of 17.6% from the current stock price [3].