Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 10.88 [6][3][4] Core Insights - The company is set to commence construction of its Middle East production base in September 2025, which is expected to contribute to revenue and profit starting in 2028 [1][3] - The company has a strategic plan to establish a regional headquarters and R&D center in the Middle East, leveraging the region's energy resources and geographical advantages [1][2] - The company's overseas sales have rapidly increased, with over 25% of total sales coming from international markets, primarily in the Middle East and North Africa [1][3] Financial Projections - The company forecasts net profits of RMB -95.49 million, RMB 136 million, RMB 345.2 million, and RMB 733.5 million for the years 2024, 2025, 2026, and 2027 respectively [4][13][14] - Sales revenue is projected to grow from RMB 3.66 billion in 2024 to RMB 9.47 billion by 2027, reflecting a compound annual growth rate of approximately 60% [4][14] - The gross profit margin is expected to improve from 9% in 2024 to 16.5% by 2027 [4][14] Project Details - The first phase of the Middle East project will have a production capacity of 300,000 tons per year, with a total design capacity of 1.1 million tons per year [3][10] - The project is located in the Salman King Energy City (SPARK) in Dammam, Saudi Arabia, which is strategically positioned near the world's largest onshore oil field [2][3] Market Position - The company’s products, including OCTG and hydrogen transport pipes, are expected to meet significant market demand in the Middle East, particularly due to Saudi Arabia's leading position in oil production and its green hydrogen development plans [2][3]
达力普控股：中东生产基地将于年内开工