AHB(SH:688639) Xin Lang Zheng Quan·2025-04-25 08:18Core Insights - In 2024, the company achieved total revenue of 2.178 billion yuan, a year-on-year increase of 12.37%, but faced a significant decline in net profit, which fell by 57.80% to 190 million yuan, indicating a structural change in the operating environment [1] Revenue and Profit Analysis - The core business of amino acid products generated revenue of 1.509 billion yuan, with a modest growth of 3.01%, while the gross margin dropped from 43.32% to 30.00%, a decline of 13.32 percentage points [2] - Revenue from vitamin products decreased by 5.04%, with gross margin plummeting by 34.33 percentage points to 20.77% [2] - Other products, such as bio-based succinic acid and 1,3-propanediol, saw a revenue increase of 318.70%, but their small scale (only 89 million yuan) and a gross margin decline of 13.93 percentage points to 28.58% could not offset the overall downturn [2] - Operating costs surged by 41.82% year-on-year, significantly outpacing revenue growth, driven by intensified price competition and rising raw material, energy, and labor costs [2] - The net profit margin fell sharply from 23.04% to 8.47% due to increased operating expenses, including a 629.63% rise in financial costs and a 29.76% increase in management expenses [2] Transformation Challenges - The company is accelerating its transition to synthetic biology, with R&D investment reaching 124 million yuan, a 13.99% increase, and 10 new patents granted [3] - However, these investments have not yet translated into economic benefits, as the bio-based succinic acid project has seen slow market demand despite a total investment of 400 million yuan [3] - International revenue grew by 30.34% to 1.032 billion yuan, but the gross margin decreased by 13.73 percentage points to 31.92%, while domestic revenue fell by 15.28% due to weak demand and rising costs [3] Capacity and Efficiency Issues - The low utilization rate of the household toothpaste production capacity in the Liuzhou plant indicates overcapacity in traditional businesses, while new bio-based product facilities face ramp-up challenges [4] - This imbalance between old and new capacities has led to a decline in total asset turnover and an increase in inventory turnover days, significantly reducing asset operational efficiency [4] Strategic Outlook - The company's 2024 annual report highlights its technological foundation in synthetic biology but also reveals typical challenges during the transition phase [5] - The company is at a crossroads, needing to stabilize its traditional business while accelerating the commercialization of new products, such as promoting PDO in the textile sector [5] - This path is fraught with challenges, requiring management to balance strategic determination and flexibility while demonstrating resilience against industry cyclical fluctuations [5]