Shengquan Group(SH:605589) Shenwan Hongyuan Securities·2025-04-01 14:13Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Views - The company's performance met expectations, with high-frequency and high-speed resin benefiting from AI demand [1][7] - The company reported a revenue of 10.02 billion yuan for 2024, a year-on-year increase of 10%, and a net profit of 868 million yuan, also up 10% year-on-year [7] - The company anticipates a significant increase in net profit for Q1 2025, projecting a growth of 45.58% to 56.49% year-on-year [7] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 11.56 billion yuan, with a year-on-year growth rate of 15.3% [6] - The net profit for 2025 is projected to be 1.225 billion yuan, reflecting a year-on-year increase of 41.1% [6] - The company’s gross margin is expected to improve to 25.0% in 2025, up from 23.6% in 2024 [6] - The return on equity (ROE) is projected to rise to 11.3% in 2025 [6] Sales and Product Performance - The company’s main products, including synthetic resins and advanced electronic materials, showed strong sales growth in 2024, with synthetic resin sales reaching 695,600 tons, up 8.85% year-on-year [7] - The company is expanding its production capacity for high-value products, including a new 1,000 tons/year PPO resin production line [7] - The biomass project in Daqing is expected to gradually achieve profitability, contributing positively to the company's overall performance [7]