山西证券：给予华恒生物增持评级

Core Viewpoint - The company has shown significant improvement in its first-quarter performance for 2025, with a notable increase in revenue, despite a decline in net profit compared to the previous year [1][2]. Financial Performance - In 2024, the company achieved revenue of 2.178 billion, a year-on-year increase of 12.37%, but the net profit attributable to shareholders was 190 million, down 57.80% year-on-year [1]. - The fourth quarter of 2024 saw revenue of 639 million, up 11.29% year-on-year and 22.21% quarter-on-quarter, with a net profit of 20 million, down 84.80% year-on-year [1]. - For the first quarter of 2025, the company reported revenue of 687 million, a year-on-year increase of 37.20% and a quarter-on-quarter increase of 7.54%, with a net profit of 51 million, down 40.98% year-on-year but up 160.36% quarter-on-quarter [1]. Profitability Metrics - The gross margin for 2024 was 24.92%, a decrease of 15.60 percentage points year-on-year, while the net margin was 8.47%, down 14.57 percentage points year-on-year [1]. - In Q4 2024, the gross margin was 17.20%, down 21.47 percentage points year-on-year, and the net margin was 2.59%, down 19.57 percentage points year-on-year [1]. - For Q1 2025, the gross margin was 24.31%, down 9.27 percentage points year-on-year, and the net margin was 7.15%, down 10 percentage points year-on-year [1]. Market and Product Development - The company faces increased market competition, particularly with the price decline of key products like valine, which has pressured profits [2]. - Positive progress has been made in new product promotion, with breakthroughs in products such as 1,3-propanediol, succinic acid, tryptophan, and arginine, which are expected to open new market opportunities [2]. - The establishment of the "Biobased Polyester Textile Industry Alliance" aims to accelerate domestic material substitution and address core material industry challenges [2]. Investment Outlook - Forecasts for 2025 to 2027 predict revenues of 2.536 billion, 2.905 billion, and 3.285 billion, with year-on-year growth rates of 16.4%, 14.6%, and 13.1% respectively [3]. - Expected net profits for the same period are 266 million, 397 million, and 506 million, with growth rates of 40.2%, 49.3%, and 27.6% respectively [3]. - The company is rated as "Buy-A" considering the market conditions for valine and other amino acids [3].