Shengquan Group(SH:605589) Huaxin Securities·2025-04-11 12:23Investment Rating - The report gives a "Buy" investment rating for the company, indicating a positive outlook for its stock performance [9]. Core Views - The company achieved a total revenue of 10.02 billion yuan in 2024, representing a year-on-year increase of 9.87%, and a net profit attributable to shareholders of 868 million yuan, up 9.94% year-on-year [1]. - The company plans to deepen technological breakthroughs in 2025, aiming to become a global leader in new material solutions, with a focus on synthetic resins, advanced electronic materials, and biomanufacturing [4][8]. - The company is expected to see significant growth in net profit over the next three years, with projections of 1.25 billion yuan in 2025, 1.47 billion yuan in 2026, and 1.84 billion yuan in 2027 [9]. Revenue and Profit Growth - In 2024, the company’s biomass product output increased by 41.33% year-on-year, with sales rising by 23.64% [2]. - The synthetic resin segment saw a production increase of 10.78% and sales growth of 8.85% in 2024 [2]. - The company’s financial expenses decreased due to the repayment of loans, contributing to improved profitability [3]. Financial Forecast - The company’s revenue is projected to grow from 11.54 billion yuan in 2025 to 15.21 billion yuan in 2027, with a compound annual growth rate of approximately 14.9% [11]. - The net profit is expected to grow at a compound annual growth rate of 25.3% from 2024 to 2027, reflecting strong operational performance [11]. - The report forecasts a diluted earnings per share (EPS) of 1.47 yuan in 2025, increasing to 2.17 yuan by 2027 [11].