RC(SZ:300596) Xin Lang Cai Jing·2025-04-22 12:43Core Insights - The company reported a revenue of 5.687 billion yuan for 2024, representing a year-on-year growth of 7.7%, and a net profit attributable to shareholders of 426 million yuan, corresponding to an earnings per share of 1.86 yuan, which is a 17.6% increase year-on-year, in line with expectations [1] - The growth in net profit is primarily driven by an increase in sales of anti-aging additives and improved capacity utilization, leading to a rise in gross margin [1] - The company plans to invest up to 300 million USD in building a research and production base in Malaysia to enhance its global competitiveness and better serve international customers [2] Financial Performance - The company achieved a non-deductible net profit of 411 million yuan in 2024, a year-on-year increase of 20%, with a net cash flow from operating activities of 464 million yuan, up 169% [1] - In Q4 2024, the company recorded revenue of 1.42 billion yuan, remaining flat year-on-year, with a net profit of 112 million yuan, reflecting a quarter-on-quarter increase of 41.3% [1] - The gross margin in Q4 2024 improved by 1 percentage point to 21.6% due to enhanced gross margin and reduced taxes [1] Product Performance - Revenue changes for various products in 2024 include: anti-oxidants (+8%), light stabilizers (+11.3%), U-pack (-3.8%), and lubricant additives (+15.4%), with corresponding gross margin changes [1] - Sales volume for anti-aging additives and lubricant additives increased by 6.4% and 23.2%, reaching 124,000 tons and 58,000 tons, respectively [1] Strategic Initiatives - The company is actively expanding its overseas bases to enhance global competitiveness and has established a life sciences division to foster new growth avenues [2] - The acquisition of a South Korean company in 2023 positions the company in the high-end electronic-grade PI materials sector, with successful mass production of flexible display materials and advanced semiconductor packaging materials [2] Profit Forecast and Valuation - The profit forecast for 2025 remains at 550 million yuan, with a new forecast of 650 million yuan for 2026, translating to a price-to-earnings ratio of 11.5 times for 2025 and 9.8 times for 2026 [3] - The target price is maintained at 31.7 yuan, corresponding to a 13.2 times P/E ratio for 2025 and an upside potential of 14.4% [3]