Shengquan Group(605589) 民生证券·2025-04-01 14:40Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][5]. Core Insights - The company achieved a revenue of 10.019 billion yuan in 2024, representing a year-on-year growth of 9.87%. The net profit attributable to shareholders was 868 million yuan, up 9.94% year-on-year [1]. - The company forecasts a net profit of 200 to 215 million yuan for Q1 2025, reflecting a significant increase of 45.58% to 56.49% year-on-year [1]. - The traditional resin business, electronic chemicals, and biomass projects are expected to show promising developments from 2025 to 2027, with projected net profits of 1.301 billion yuan, 1.809 billion yuan, and 2.482 billion yuan respectively [4]. Revenue and Profitability - The synthetic resin products generated revenue of 5.343 billion yuan in 2024, with a volume of 695,600 tons, marking an 8.85% increase in sales volume [2]. - Advanced electronic materials and battery materials achieved revenue of 1.242 billion yuan, with a sales volume of 69,000 tons, indicating a 1.06% increase in volume [3]. - The biomass business reported revenue of 956 million yuan, growing by 11.74% year-on-year [4]. Financial Forecasts - The company is projected to achieve revenues of 12.059 billion yuan, 14.296 billion yuan, and 16.995 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 20.4%, 18.6%, and 18.9% [5][9]. - The earnings per share (EPS) are expected to be 1.54 yuan, 2.14 yuan, and 2.93 yuan for the years 2025, 2026, and 2027 respectively [5][9]. - The price-to-earnings (PE) ratio is projected to decrease from 28x in 2024 to 10x by 2027, indicating an improving valuation [5][9].