AHB(SH:688639) Chang Jiang Shang Bao·2025-07-31 23:48Core Viewpoint - Company Huaheng Biological is planning to issue H-shares and list on the Hong Kong Stock Exchange to enhance its global strategy and overall strength [1][2]. Group 1: Company Overview - Huaheng Biological is a leading enterprise in the domestic bio-fermentation sector, actively expanding its overseas market and customer base [1][2]. - In 2024, the company achieved overseas revenue of 1.032 billion yuan, a year-on-year increase of 30.34%, accounting for 47.4% of total revenue [1][3]. Group 2: Financial Performance - Despite revenue growth, Huaheng Biological has faced profit pressure, with a gross profit margin of 24.92% in 2024, down 15.6 percentage points year-on-year [1][8]. - The company reported a significant decline in net profit for 2024, with a net profit of 190 million yuan, a decrease of 57.80% year-on-year [7]. - In the first quarter of 2025, the company achieved revenue of 687 million yuan, a year-on-year increase of 37.20%, but net profit fell by 40.98% [7]. Group 3: Market Conditions - The company is experiencing increased competition and a significant drop in product prices, particularly in the L-valine market, which has led to a historical low in sales prices [8]. - The domestic market for L-valine is facing overcapacity issues, impacting the company's profitability [8]. Group 4: Capital Raising and Investments - Huaheng Biological has raised a total of 1.325 billion yuan through A-share financing since its IPO four years ago [5]. - The company recently completed a non-public offering, raising 700 million yuan, which will support its ongoing projects [4][5]. Group 5: Future Outlook - The company aims to leverage international capital markets to optimize its capital structure and enhance governance [2]. - Huaheng Biological is focused on expanding its production capacity despite current market challenges, with ongoing projects valued at 1.592 billion yuan [8].