Wuzhou Special Paper(SH:605007) EBSCN·2025-04-11 09:45Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 7.66 billion yuan in 2024, representing a year-on-year increase of 17.4%, and a net profit attributable to shareholders of 360 million yuan, up 32.6% year-on-year [5] - The company completed a production volume of 1.499 million tons of mechanical paper and a sales volume of 1.466 million tons in 2024, with year-on-year growth of 40.8% and 38.7% respectively [6] - The company is advancing its product diversification and pulp-paper integration strategy, with new production capacities coming online [8][9] Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of 2.19 billion yuan, a year-on-year increase of 18.1%, but a net profit of 34.86 million yuan, down 79.0% year-on-year [5] - The gross margin for 2024 was 9.9%, up 0.3 percentage points year-on-year, while Q4 2024 gross margin was 5.6%, down 9.5 percentage points year-on-year [7] Production and Sales - The company’s product sales included food packaging (605,000 tons), daily consumer products (279,000 tons), publishing and printing (226,000 tons), industrial packaging (317,000 tons), and industrial supporting materials (38,000 tons) [6] - The company’s new production lines in Hubei and other regions are contributing to the rapid growth in production and sales [6] Strategic Outlook - The company is focusing on expanding its pulp-paper integration projects and diversifying its product matrix, which includes entering larger market segments such as publishing and industrial packaging materials [8] - The company plans to launch new product types in 2025 to mitigate market risks associated with single paper types [8] Valuation and Forecast - The revenue forecasts for 2025 and 2026 have been adjusted to 9.94 billion yuan and 11.55 billion yuan, respectively, reflecting a decrease of 14% and 15% [9] - The projected net profit for 2025 and 2026 is revised to 360 million yuan and 430 million yuan, down 38% and 40% respectively [9]