Kehua Holdings(603161) Dongxing Securities·2025-04-17 07:15Investment Rating - The report maintains a "Recommended" rating for Kewah Holdings, indicating a positive outlook for the company's stock performance relative to market benchmarks [5][4]. Core Insights - Kewah Holdings reported a revenue of 2,372.25 million yuan in 2024, a decrease of 9.28% year-on-year, and a net profit attributable to shareholders of 105.08 million yuan, down 14.71% year-on-year. The decline in revenue is primarily attributed to lower selling prices [1][4]. - The company's cash flow performance is strong, with a net operating cash flow of 572 million yuan in 2024, which is better than the net profit due to high non-cash expenses and improved operational efficiency [3][4]. - Despite the short-term downturn in the turbocharger industry, Kewah Holdings has opportunities to increase its market share in key products, with global market shares for turbo shells and intermediate shells at 9.1% and 15.7%, respectively [2][4]. Summary by Sections Financial Performance - In 2024, Kewah Holdings' main business gross margin was 16.06%, a decrease of 1.03 percentage points from 2023, primarily due to a 4.01 percentage point drop in turbo shell prices [2]. - The company’s financial expenses decreased by 1.41 percentage points due to reduced interest-bearing debt and foreign exchange gains, while management fees increased by 0.82 percentage points due to share-based payments [2]. Cash Flow and Debt Management - The company has successfully reduced its interest-bearing debt by 541 million yuan to a total of 841 million yuan in 2024, leading to a decrease in interest expenses by 22.26 million yuan [3]. - The report highlights that the company has ended large-scale capital expenditures, which is expected to improve operational quality and cash flow sustainability [3][4]. Profit Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 120 million yuan, 150 million yuan, and 180 million yuan, respectively, with corresponding EPS of 0.64, 0.77, and 0.93 yuan [4][11].