KangLongDa(603665) 太平洋·2025-02-27 02:05Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index within the next six months [13]. Core Insights - The company is expected to face losses in 2024 due to several factors, including the downturn in lithium salt prices, goodwill impairment, and the impact of the Vietnam project transitioning to fixed assets [4][9]. - The Vietnam factory is successfully operational, and it is anticipated to contribute positively to revenue and profit in 2025, leveraging its cost advantages and scarce production capacity [5][9]. - The company has a strong position in the glove manufacturing sector, with a focus on labor protection gloves and medical gloves, benefiting from favorable tax policies and lower labor costs in Vietnam [5][9]. Summary by Sections Company Overview - The company has a total share capital of 1.62 billion shares and a market capitalization of 32.61 billion yuan, with a 12-month high of 24.65 yuan and a low of 12.55 yuan [3]. Financial Performance - The company forecasts a net profit attributable to shareholders of between -500 million to -350 million yuan for 2024, compared to -220 million yuan in 2023 [4]. - The expected revenue for 2024 is projected at 1.51 billion yuan, a decrease of 3% from 2023, with a significant recovery anticipated in 2025 [11]. Business Segments - The glove business is stable, with the Vietnam project expected to ramp up production and contribute approximately 1 billion yuan in output once fully operational [5][9]. - The company is also involved in the production of ultra-high molecular weight polyethylene, which has potential applications in robotics, indicating a forward-looking capacity expansion [6][9]. Market Outlook - The report suggests that the lithium salt business is under pressure due to price volatility, but there is optimism for recovery as the industry adjusts [8][9]. - The company is well-positioned to capture market share in the glove sector, especially with the anticipated increase in tariffs on Chinese imports, enhancing the competitive edge of its Vietnam operations [5][9].