SNS(SZ:300470) Huaxin Securities·2025-04-18 14:16Investment Rating - The report maintains a "Buy" investment rating for the company [2][9] Core Views - The company has achieved steady revenue growth driven by both organic and external factors, with a 14.40% year-on-year increase in revenue to 1.567 billion yuan and a 13.21% increase in net profit to 392 million yuan for 2024 [4][9] - The company has demonstrated strong operational resilience through effective cost control and a high dividend policy, with a proposed cash dividend of 5 yuan per 10 shares for 2024 [4] - Strategic breakthroughs have been made through mergers and acquisitions, with significant contributions from acquired companies and a 50% year-on-year increase in overseas revenue [5][9] - The company is focusing on technological advancements and capacity expansion, with a research and development investment of 75.77 million yuan in 2024 and the successful production of diamond-coated seals [8][9] Summary by Sections Financial Performance - In 2024, the company reported revenue of 1.567 billion yuan, a 14.40% increase year-on-year, and a net profit of 392 million yuan, reflecting a 13.21% growth [4][11] - The gross margin for the year was 48.34%, despite a decline of 1.31 percentage points due to weak demand in the petrochemical industry [4] Mergers and Acquisitions - The company has successfully integrated several acquisitions, including Yutai Technology and New Dipei, with net profits of 29.90 million yuan and 28.18 million yuan respectively, showing significant synergy effects [5] - The acquisition of KS GmbH further strengthens the company's upstream integration capabilities in the rubber and plastic sealing sector [5] International Expansion - The company has seen a notable increase in international business, with overseas revenue reaching 200 million yuan, a 50% increase year-on-year [5] - Successful projects include high-end contracts in Abu Dhabi and Algeria, indicating strong international recognition of the company's technical capabilities [5] Technological Development - The company invested 75.77 million yuan in R&D in 2024, achieving breakthroughs in core technologies and securing 19 patents [8] - Capacity upgrades are ongoing, with the production line for rubber and plastic seals fully operational and efficiency improvements through new management systems [8] Earnings Forecast - The company is projected to achieve revenues of 1.761 billion yuan, 2.015 billion yuan, and 2.239 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 2.16 yuan, 2.50 yuan, and 2.74 yuan [9][11]