Yanggu Huatai(SZ:300121) Haitong Securities·2025-04-02 01:12Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The report highlights a 36.38% year-on-year decline in the company's net profit attributable to the parent company for 2024, driven by a decrease in product prices and increased convertible bond interest expenses [7]. - The company is expected to benefit from its overseas expansion and new material development, which are anticipated to drive growth in the coming years [7]. Financial Performance and Forecast - The company reported a revenue of 34.31 billion yuan in 2024, a slight decrease of 0.69% year-on-year [7]. - The projected revenues for 2025, 2026, and 2027 are 39.56 billion yuan, 43.59 billion yuan, and 47.16 billion yuan, respectively, indicating a growth rate of 15.3%, 10.2%, and 8.2% [6][12]. - The net profit for 2024 is forecasted at 1.92 billion yuan, with a significant recovery expected in 2025 at 3.06 billion yuan, reflecting a year-on-year growth of 59.5% [6][12]. - The company's earnings per share (EPS) are projected to be 0.43 yuan in 2024, increasing to 0.68 yuan in 2025 and further to 0.84 yuan in 2027 [6][12]. Product and Market Analysis - The report indicates that the company's high-performance rubber additives and multifunctional rubber additives had revenue changes of -5.76% and 6.34% respectively in 2024, with sales volumes increasing by 4.06% and 4.96% [7]. - The company is actively expanding its overseas production capacity, including a new rubber additive production base in Thailand [7]. - The acquisition of Bomi Technology is aimed at enhancing the company's competitiveness in the electronic chemicals sector, with a focus on polyimide materials [7]. Valuation and Peer Comparison - The report suggests a reasonable valuation range for the company at 12.24 to 13.60 yuan based on a price-to-earnings (PE) ratio of 18-20 times for 2025 [7]. - The company’s competitive position is strengthened by its significant market share in key products, such as over 60% in the global market for anti-scorching agents [7].