Xingfa Chem(600141) 华创证券·2025-04-01 14:34Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][20]. Core Views - The company's main products are gradually seeing a recovery in demand, leading to a steady increase in profitability [2]. - In 2024, the company achieved a revenue of 28.396 billion yuan, a year-on-year increase of 0.41%, and a net profit attributable to shareholders of 1.601 billion yuan, up 14.33% year-on-year [2][5]. - The company plans to distribute a cash dividend of 10 yuan per 10 shares, totaling 1.103 billion yuan, which accounts for 68.9% of the net profit attributable to shareholders, resulting in a current dividend yield of approximately 4.5% [2][5]. Financial Performance Summary - The company reported a total revenue of 28.396 billion yuan for 2024, with a projected revenue of 31.7 billion yuan for 2025, reflecting a growth rate of 11.6% [5]. - The net profit attributable to shareholders is expected to grow from 1.602 billion yuan in 2024 to 2.334 billion yuan in 2025, representing a growth rate of 45.8% [5]. - The earnings per share (EPS) is projected to increase from 1.45 yuan in 2024 to 2.12 yuan in 2025, with a price-to-earnings (P/E) ratio of 15 times for 2025 [5][10]. Business Segment Performance - In 2024, the company generated revenue from various segments: pesticides (5.204 billion yuan), fertilizers (4.049 billion yuan), specialty chemicals (5.278 billion yuan), and organic silicon (2.647 billion yuan), with year-on-year growth rates of 21.5%, 12.3%, 5.0%, and 23.5% respectively [9]. - The company’s gross margin for 2024 was 19.52%, an increase of 3.35 percentage points year-on-year, indicating improved profitability driven by recovering product demand and operational efficiency [9]. Future Outlook - The company is focusing on optimizing capital expenditures and dividend policies, with expectations for more aggressive shareholder returns through buybacks and employee stock ownership plans [9]. - The report adjusts the net profit forecasts for 2025 and 2026 to 2.334 billion yuan and 2.595 billion yuan respectively, with a new target price of 31.80 yuan based on a 15 times P/E ratio for 2025 [9][10].