Shengquan Group(SH:605589) Huaan Securities·2025-04-07 07:15Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 10.02 billion yuan for 2024, a year-on-year increase of 9.87%, and a net profit attributable to shareholders of 0.868 billion yuan, also up by 9.94% [4][5] - The company expects a significant increase in net profit for Q1 2025, projecting between 0.2 billion to 0.215 billion yuan, representing a year-on-year growth of 45.58% to 56.49% [5] - The sales volume of synthetic resin products increased by 8.85% year-on-year, with core products such as phenolic resin and casting resin also showing growth [6] - The company is expanding its new materials business, driven by strong demand in emerging fields such as AI servers and 5G communication [7][8] - The company anticipates net profits of 1.342 billion, 1.773 billion, and 2.043 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 17.20, 13.02, and 11.30 [9] Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 2.868 billion yuan, a year-on-year increase of 18.15% and a quarter-on-quarter increase of 13.55% [4] - The company’s gross margin for 2024 was 23.6%, with projections for 2025 to reach 25.5% [10] Product Development - The company has successfully commercialized new products, including nuclear-grade resin for high-temperature gas-cooled reactors and specialized resins for aerospace applications [6] - The production lines for porous carbon and PPO resin have been established, meeting the requirements for high-frequency and high-speed applications [7] Market Position - The company is positioned as a leading domestic synthetic resin manufacturer, benefiting from technological advancements in biomass refining and resin synthesis [6][7] - The company is entering the supply chains of major clients in the electronics and battery materials sectors, providing a foundation for future growth [8]