HJHS(SH:603616) Chang Jiang Shang Bao·2025-11-21 08:17Core Viewpoint - The company Hanjian Heshan (603616.SH) has won a bid for a water supply project, which is expected to significantly impact its revenue and profit positively, despite ongoing financial challenges and previous losses [2][3][4]. Group 1: Project Bid and Financial Impact - Hanjian Heshan has won a bid for a pipe procurement project with a contract value of 388 million yuan, which is expected to account for 49.26% of the company's audited revenue for 2024 [2]. - The supply period for the project is from April 30, 2026, to April 29, 2030, indicating a long-term revenue stream [2]. - The company has also signed a contract worth approximately 207 million yuan for a concrete drainage pipe project, further contributing to its revenue [3]. Group 2: Business Operations and Product Lines - The main business of Hanjian Heshan includes the research, production, and sales of prestressed concrete pipes (PCCP), reinforced concrete drainage pipes (RCP), and other concrete-related products [3][4]. - The company has faced continuous losses from 2022 to 2024, with net losses of 356 million yuan, 308 million yuan, and 231 million yuan respectively [3][4]. Group 3: Recovery and Future Outlook - In the first three quarters of 2025, the company reported a revenue of 548 million yuan, a year-on-year increase of 37.39%, and a net profit of 9.76 million yuan, marking a turnaround from previous losses [4]. - The improvement in performance is attributed to the stable delivery of signed contracts for PCCP, leading to increased revenue and overall gross margin [4]. Group 4: Regulatory Issues - The company has faced regulatory scrutiny, receiving warnings from the Beijing Securities Regulatory Bureau for financial accounting irregularities and failure to disclose significant litigation and related transactions [5]. - These issues have led to an audit report for 2024 that includes an emphasis of matter paragraph, indicating potential concerns regarding financial practices [5].