ZANYU TECHNOLOGY(002637) Minsheng Securities·2025-01-16 14:24Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Views - The company is a leading player in the domestic surfactant and oil chemical industry, with a strong focus on innovation and technology in the development and manufacturing of surfactants and oil chemical products [10][13]. - The palm oil price is expected to rise steadily, driven by the B40 biodiesel policy in Indonesia, which may stimulate the introduction of special export taxes [2]. - The company has strategically positioned itself in the OEM/ODM market, leveraging the stable growth of the domestic personal care product market to create a second growth curve [3]. Summary by Sections 1. Company Overview - The company has a rich history and has evolved into a high-tech enterprise specializing in surfactants and oil chemical products, with significant production capacity [10][13]. - As of the end of 2023, the annual production capacity for surfactants and oil chemical products exceeded 1.2 million tons and 1 million tons, respectively [10][13]. 2. Industry Position - The surfactant market in China is experiencing increasing concentration, with the company holding a leading position in the industry [26][36]. - The domestic surfactant production has shown steady growth, with production increasing from 3.5 million tons in 2018 to 4.7 million tons in 2023, reflecting a compound annual growth rate of approximately 6.06% [33]. 3. Oil Chemical Products - The company has a comprehensive range of oil chemical products, including stearic acid, fatty acids, and glycerol, with a significant portion of its production based on palm oil [51][57]. - The palm oil market is characterized by a stable supply from Indonesia and Malaysia, which together account for over 80% of global production [65]. 4. Strategic Initiatives - The company has established a production base in Indonesia to mitigate raw material supply risks and enhance cost advantages [3][65]. - The OEM/ODM business is expected to contribute significantly to revenue growth, with plans to increase production capacity to 1.5 million tons [3][48]. 5. Financial Projections - The company forecasts net profits of 212 million, 345 million, and 448 million yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 22, 13, and 10 [4][3].