Hanvo Safety(SZ:300952) Xinda Securities·2024-06-19 01:00Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its future performance [61]. Core Viewpoints - The company is positioned as a leader in the functional safety glove market and is actively expanding its high-performance polymer materials segment. The demand for functional safety gloves is increasing, particularly in developed markets like Europe, the US, and Japan, where safety awareness is higher. The domestic market for ultra-high molecular weight polyethylene fibers is experiencing significant growth, with a notable supply-demand gap [61][45]. - The company achieved a revenue of 977 million yuan in 2023, reflecting a year-on-year growth of 9.39%. The revenue from functional safety gloves was 940 million yuan, contributing to the overall revenue increase. However, the net profit attributable to the parent company decreased by 13.05% to 106 million yuan due to product structure adjustments [61][45]. - The company is focusing on optimizing its brand marketing strategies and advancing its digital transformation through intelligent production. It is expanding its direct sales channels and developing its own brands, such as "Best Grip" and "拳胜," to penetrate the domestic safety glove market [61][45]. Summary by Sections Company Overview - The company, established in 2004, integrates R&D, production, and sales, with a focus on high-tech products. It operates three modern factories and two marketing subsidiaries, covering over 50 countries and regions [50]. Financial Analysis - The company has shown continuous revenue growth, with a projected revenue increase to 1.375 billion yuan in 2024, representing a 40.7% year-on-year growth. The net profit is expected to reach 179 million yuan, a 69.5% increase [44][61]. Industry Analysis - The functional safety glove market is expanding, with China's market size for functional safety gloves projected to grow from 4.572 billion yuan in 2018 to 6.142 billion yuan by 2026, indicating a compound annual growth rate of 4.02% [17][61]. Product and Market Strategy - The company is enhancing its product offerings in the ultra-high molecular weight polyethylene fiber segment, which is in high demand due to its applications in various industries, including defense and safety [21][61]. The domestic market is currently facing a supply shortage, with a total demand of approximately 49,100 tons in 2020, while actual production was only about 21,000 tons [61]. Future Growth Potential - The company plans to expand its production capacity for ultra-high molecular weight polyethylene fibers and is investing in intelligent manufacturing to improve efficiency and reduce costs. The issuance of convertible bonds will support the construction of new production capacity [45][61].