Zhejiang Longsheng(SH:600352) Huaxin Securities·2025-04-18 09:32Investment Rating - The report maintains a "Buy" investment rating for Zhejiang Longsheng [9] Core Views - The company demonstrates resilience with counter-cyclical growth and diversified layout, achieving a global sales volume increase of 7.17% in the dye business despite industry challenges [2] - The company has established a comprehensive global R&D system supported by nearly 1900 domestic and international patents, creating a strong technical barrier for its product matrix [2] - The real estate business has seen significant revenue growth of 87.26% year-on-year, contributing to overall performance [2] - Operating cash flow has increased significantly, with a net cash flow of 9.265 billion, up 236.79% year-on-year, aided by substantial prepayments from real estate projects [3] - The company is focused on green manufacturing and low-carbon transformation, leveraging technology to enhance competitiveness and sustainability [4] - Future profit forecasts indicate a steady increase in net profit, with projections of 2.07 billion, 2.21 billion, and 2.39 billion for 2025, 2026, and 2027 respectively [9] Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 15.884 billion, a year-on-year increase of 3.80%, and a net profit of 2.030 billion, up 32.36% [1] - The fourth quarter of 2024 saw a revenue of 5.274 billion, reflecting a 17.90% year-on-year increase and a 44.29% quarter-on-quarter increase [1] Business Segments - The dye and additive revenue grew by 0.94% and 7.63% respectively, outperforming industry averages [2] - The intermediate business experienced a sales volume increase of 16.55% and revenue growth of 4.58% [2] - The company’s overseas market revenue accounted for 42.15%, with the U.S. being a key sales region [2] Cost Management - The company effectively controlled costs, with a decrease in total cash outflow by 10.91% year-on-year [3] - Financial expenses decreased due to increased interest income, aiding in profit enhancement [3] Technological Innovation - The company is advancing its green manufacturing capabilities through innovative technologies and a comprehensive production system [4] - Plans for future development include a dual approach of independent research and strategic acquisitions to enhance service offerings [4]