Kehua Holdings(603161) Dongxing Securities·2025-04-17 08:23Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook compared to market benchmarks [5][4]. Core Insights - The company has shown continuous improvement in cash flow, with a significant reduction in interest-bearing debt, which enhances operational quality [3][4]. - Despite a decline in revenue and net profit for 2024, the company has increased its market share in key products, indicating potential for future growth [1][2]. - The global market for turbochargers is experiencing a slight downturn, but the company is positioned to capitalize on its competitive advantages in core processes and R&D [4][2]. Financial Performance Summary - In 2024, the company reported operating revenue of 2,372.25 million yuan, a decrease of 9.28% year-on-year, and a net profit of 105.08 million yuan, down 14.71% from the previous year [11]. - The gross margin for the main business was 16.06%, a decline of 1.03 percentage points, primarily due to falling prices of turbocharger components [2]. - The company achieved a net cash flow from operating activities of 572 million yuan, reflecting improved operational efficiency and reduced working capital needs [3]. Market Position and Future Outlook - The company holds a global market share of 9.1% for turbo shells and 15.7% for intermediate shells, with significant room for growth despite industry challenges [2][4]. - Profit forecasts for the company indicate a recovery, with expected net profits of 120 million yuan, 150 million yuan, and 180 million yuan for 2025, 2026, and 2027 respectively [4][11]. - The report suggests that the company can continue to enhance its market share through efficiency improvements and cost reductions, despite the current industry downturn [2][4].