Dawn(SZ:002838) CMS·2025-04-09 01:32Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][7]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of between 42.36 million and 45.89 million yuan in Q1 2025, representing a year-on-year growth of 20% to 30% [1][6]. - The growth in the company's main business is strong, with record sales in elastomers and modified plastics, driven by policies promoting the replacement of old consumer products in the automotive, home appliance, and electronics sectors [6]. - The TPV (Thermoplastic Vulcanizate) business is anticipated to accelerate, benefiting from tariff increases on imports from the U.S., which enhances the company's competitive position [6]. - The company is strategically developing new production capabilities and advancing R&D in cutting-edge technologies like DVA (Dynamic Vapor Absorption), which could significantly expand its growth potential [6][7]. Financial Performance - The company forecasts revenues of 6.13 billion yuan in 2025, with a year-on-year growth rate of 16% [8][11]. - The projected net profit for 2025 is 205 million yuan, reflecting a 46% increase compared to the previous year [8][11]. - The company’s financial ratios indicate a stable growth trajectory, with an expected PE ratio of 29.8 in 2025 [11]. Market Position - The company is a leading player in the TPV industry in China, with ongoing capacity expansion and a focus on high-margin products [6][7]. - The DVA product, which is set to replace butyl rubber in tires, has a potential domestic market size exceeding 20 billion yuan, indicating significant growth opportunities [6][7].