Investment Rating - The report assigns a "Recommended" investment rating to the company, Huami New Materials [4][63]. Core Viewpoints - The company achieved a double-digit growth in both revenue and net profit in 2023, with revenue reaching 400.45 million yuan, a year-on-year increase of 19.35%, and a net profit of 51.88 million yuan, up 21.69% year-on-year. This growth is attributed to the company's ability to meet customized demands through new products and the operational effectiveness of its technical centers [25][4]. - The special engineering plastics market in China is still in its early development stage, with high import dependency. The report anticipates that the demand for rubber products will continue to grow as downstream markets expand [4][51]. Company Business Structure - Huami New Materials, established in 1998, focuses on the research, development, production, and sales of rubber and plastic materials and products. The company’s main products include rubber compounds and various rubber products used in industries such as automotive, high-speed rail, and aerospace [3][6]. - The company has established partnerships with major clients, including Great Wall Motors and China National Petroleum Corporation, and has entered the military application field [22][6]. Financial Analysis - The company’s financial performance shows a stable gross margin of 31.11% in 2023, with a net profit margin of 11.76% in Q1 2024. The company has maintained effective cost control, with a stable expense ratio [30][4]. - The projected revenue for 2024-2026 is expected to grow to 442 million yuan, 563 million yuan, and 719 million yuan, respectively, with corresponding net profits of 57 million yuan, 72 million yuan, and 91 million yuan [2][63]. Industry Analysis - The rubber and plastic products industry is crucial for the stable operation of end products, with significant growth potential driven by the automotive, electronics, and rail transportation sectors. The report highlights the increasing demand for special engineering plastics due to their lightweight and high-strength properties [38][40]. - The report notes that the domestic special engineering plastics market is still developing, with many companies focusing on innovation and cost reduction to compete with imported products [51][40].
华密新材：首次覆盖报告：深耕橡塑行业，前瞻布局特种工程塑料