Zhejiang Yonghe Refrigerant (SH:605020)2025-01-20 09:38Investment Rating - The report maintains an "Outperform" rating for the company [2][7]. Core Insights - The company has exceeded earnings expectations for 2024, forecasting a net profit attributable to shareholders between 240 to 280 million yuan, representing a year-on-year growth of 30.66% to 52.43% [7]. - The significant increase in profits is attributed to rising refrigerant prices and synchronized growth in production, sales, and revenue of fluorinated polymer products [7]. - The company’s subsidiary, Shaowu Yonghe, has turned profitable in Q4 2024, contributing to the overall positive outlook [7]. - The company plans to raise up to 1.736 billion yuan through a private placement to fund the construction of a new materials industrial park, enhancing its integrated layout in the refrigerant industry [7]. Financial Data and Profit Forecast - Total revenue is projected to grow from 4,369 million yuan in 2023 to 6,932 million yuan in 2026, with a compound annual growth rate (CAGR) of approximately 13.3% [3][9]. - The net profit attributable to shareholders is expected to increase from 184 million yuan in 2023 to 923 million yuan in 2026, reflecting a significant growth trajectory [3][9]. - The earnings per share (EPS) is forecasted to rise from 0.49 yuan in 2023 to 2.43 yuan in 2026 [3][9]. - The company’s gross margin is anticipated to improve from 14.6% in 2023 to 27.2% in 2026, indicating enhanced profitability [3][9]. Market Data - As of January 17, 2025, the closing price of the stock is 19.75 yuan, with a market capitalization of 7,488 million yuan [4]. - The stock has experienced a price range of 33.68 yuan (highest) to 14.43 yuan (lowest) over the past year [4]. - The price-to-earnings (PE) ratio is projected to decrease from 41 in 2023 to 8 in 2026, suggesting a more attractive valuation over time [3][4].