HSSM(SZ:002290) Zheng Quan Zhi Xing·2025-04-24 22:15Core Insights - The company, He Sheng New Materials (002290), reported a significant increase in revenue and net profit for Q1 2025, with total revenue reaching 627 million yuan, up 14.21% year-on-year, and net profit of 50.95 million yuan, up 82.72% year-on-year [1] Financial Performance - Total revenue for Q1 2025 was 627 million yuan, compared to 549 million yuan in Q1 2024, reflecting a year-on-year increase of 14.21% [1] - Net profit for Q1 2025 was 50.95 million yuan, up from 27.88 million yuan in Q1 2024, marking an increase of 82.72% [1] - Gross margin improved to 15.89%, a year-on-year increase of 52.37%, while net margin rose to 8.01%, up 57.77% [1] - The company reported a significant increase in operating cash flow per share, which reached 0.24 yuan, compared to -0.07 yuan in the previous year, representing a 448.44% increase [1] Balance Sheet and Cash Flow - Cash and cash equivalents increased to 424 million yuan, a rise of 34.55% from 315 million yuan [1] - Accounts receivable rose to 483 million yuan, with a year-on-year increase of 35.02% [1] - The company reduced its interest-bearing debt significantly to 128 million yuan, down 55.86% from 290 million yuan [1] Cost Structure - Total selling, administrative, and financial expenses amounted to 13.14 million yuan, accounting for 2.09% of revenue, which is a 16.26% increase year-on-year [1] - The company’s net asset per share increased to 3.45 yuan, up 16.56% from 2.96 yuan [1] - Earnings per share rose to 0.21 yuan, reflecting a 90.91% increase from 0.11 yuan [1] Market and Business Model - The company’s return on invested capital (ROIC) was reported at 10.05%, indicating average capital returns [3] - The net profit margin for the previous year was 3.73%, suggesting limited value addition in products or services [3] - The company has a healthy cash position, with cash assets covering 58.75% of current liabilities [3] Future Outlook - Analysts expect the company’s performance in 2025 to reach 208 million yuan, with an average earnings per share forecast of 0.84 yuan [3] - The company acknowledged a decline in net cash flow from operating activities in 2024, attributed to increased business volume and higher cash payments for goods [4]