HHCK(SH:688535) ZHONGTAI SECURITIES·2024-11-13 08:53Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company plans to acquire Hengshuo Huawai, which is expected to enhance its competitive edge and accelerate the expansion into international markets [1] - The acquisition is seen as a strong partnership that will leverage both companies' strengths in the epoxy encapsulation material sector, aiming for a significant market presence globally [1] - The report anticipates a robust growth trajectory for the company, driven by the increasing demand for advanced packaging materials and the successful integration of Hengshuo Huawai [1][2] Financial Summary - Revenue Forecast: - 2022A: 303 million - 2023A: 283 million - 2024E: 343 million (21% YoY growth) - 2025E: 440 million (28% YoY growth) - 2026E: 538 million (22% YoY growth) [1][2] - Net Profit Forecast: - 2022A: 41 million - 2023A: 32 million - 2024E: 47 million (50% YoY growth) - 2025E: 71 million (49% YoY growth) - 2026E: 94 million (32% YoY growth) [1][2] - Earnings Per Share (EPS): - 2022A: 0.68 - 2023A: 0.39 - 2024E: 0.59 - 2025E: 0.88 - 2026E: 1.16 [1][2] - Valuation Ratios: - P/E ratio forecasted to decrease from 236.7 in 2023A to 79.7 in 2026E - P/B ratio forecasted to decrease from 7.3 in 2023A to 6.4 in 2026E [1][2] Business Overview - The company specializes in epoxy encapsulation materials and electronic adhesives, with a comprehensive product range for various packaging applications [1] - It holds a leading position in the domestic market for epoxy encapsulation materials, ranking first in both sales volume and revenue [1] - The acquisition of Hengshuo Huawai is expected to enhance the company's competitive advantage and reduce redundant investments in the industry [1][2]