SINYUAN ZM(301398) Shanxi Securities·2025-04-18 07:53Investment Rating - The report assigns an "Accumulate-A" investment rating for the company, indicating a positive outlook for its stock performance in the near term [1][8]. Core Insights - The company's operations have shown continuous improvement, with a significant expansion in magnesium alloy applications [1]. - In 2024, the company achieved a revenue of 409 million yuan, representing a year-on-year growth of 16.01%, and a net profit of 80 million yuan, with a slight increase of 0.31% [2]. - The automotive sector is a major growth driver, with revenue from automotive-related products reaching 366 million yuan, up 18.9% year-on-year [4]. - The company aims to become a leader in the magnesium alloy lightweight sector, focusing on automotive magnesium alloy products, which accounted for nearly 70% of its main business revenue in 2024 [4][5]. - The company has successfully expanded its overseas market presence, with domestic sales of 287 million yuan (up 12.66%) and international sales of 122 million yuan (up 24.74%) [5]. - The gross profit margin for 2024 was 35.95%, reflecting a slight increase of 0.27 percentage points year-on-year, driven by the scaling of new projects [6]. - The company is actively exploring new applications for magnesium alloys in various sectors, including electric bicycles and garden tools, showcasing its innovation capabilities [6]. Financial Performance Summary - The company forecasts revenues of 514 million yuan, 661 million yuan, and 869 million yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 25.7%, 28.6%, and 31.5% [8]. - The projected net profits for the same years are 101 million yuan, 132 million yuan, and 174 million yuan, with growth rates of 25.5%, 31.4%, and 31.9% [8]. - The earnings per share (EPS) are expected to be 1.26 yuan, 1.65 yuan, and 2.18 yuan for 2025, 2026, and 2027, respectively [8].