HENGTONG TECH.(SZ:300374) EBSCN·2025-03-26 09:14Investment Rating - The report maintains a "Buy" rating for the company [4][13]. Core Views - The prefabricated construction industry has seen improvements in standards since 2020, which lays the foundation for industrialization and scale [1]. - The company is expected to benefit from the supply-side reforms in the steel industry, which may enhance the profitability of its steel structure business [1]. - The company forecasts a revenue increase of 27% year-on-year in 2024, with a projected net loss of 0.62 billion to 1.2 billion yuan, an improvement from a loss of 1.6 billion yuan in 2023 [2]. Financial Summary - Revenue is projected to grow from 635 million yuan in 2022 to 1,901 million yuan in 2024, reflecting a growth rate of 27.05% [3][9]. - The company's net profit is expected to improve from a loss of 260 million yuan in 2022 to a loss of 96 million yuan in 2024, with a forecasted return to profitability in 2025 with a net profit of 2 million yuan [3][9]. - The earnings per share (EPS) is projected to improve from -1.06 yuan in 2022 to -0.39 yuan in 2024, and then to 0.01 yuan in 2025 [3][9]. Industry Context - The report highlights that the prefabricated construction industry is expected to expand as the cost of prefabrication decreases, allowing for broader application [8]. - The steel industry is undergoing supply-side reforms, which are anticipated to stabilize steel prices and improve the profitability of companies involved in steel structures [1].