Shengtak New Material (SZ:300881) Huachuang Securities·2025-04-20 10:17Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expected outperformance of the benchmark index by 10%-20% over the next six months [16]. Core Insights - The company achieved a total revenue of 2.663 billion yuan in 2024, representing a year-on-year growth of 34.43%. The net profit attributable to shareholders reached 226 million yuan, up 87.38% year-on-year [2]. - The automotive parts segment is identified as a new growth driver, contributing 18.91% to total revenue in 2024, with products primarily used in the electric vehicle sector [8]. - The company plans to continue optimizing its product structure in the steel pipe business while expanding its footprint in the automotive parts market, which is expected to provide a second growth curve [8]. Financial Performance Summary - 2024 Financials: - Total Revenue: 2,663 million yuan - Year-on-Year Growth: 34.4% - Net Profit: 226 million yuan - Year-on-Year Growth: 87.4% - Earnings Per Share: 2.05 yuan [4][9] - 2025-2027 Projections: - Expected Net Profit: 277 million yuan in 2025, 307 million yuan in 2026, and 321 million yuan in 2027, with respective growth rates of 22.6%, 10.9%, and 4.4% [8][9]. - Valuation Metrics: - Target Price: 32.76 yuan - Current Price: 28.87 yuan - Price-to-Earnings Ratio: 14 for 2024, projected to decrease to 10 by 2027 [4][8]. Business Segment Insights - Steel Pipe Business: - The company reported a production and sales volume of 158,200 tons and 154,700 tons respectively in 2024, with year-on-year growth of 16.50% and 11.35% [8]. - The gross margin for the steel pipe business improved to 17.48%, an increase of 4.34 percentage points year-on-year [8]. - Automotive Parts Business: - The company has made strategic acquisitions to enter the automotive parts market, focusing on components for electric vehicles, which are expected to drive future growth [8]. Dividend Policy - The company plans to distribute a cash dividend of 10 yuan per 10 shares, totaling 109 million yuan, which represents 48% of the net profit attributable to shareholders for 2024 [8].