Red Avenue New Materials(603650) 太平洋证券·2025-04-22 15:31Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [1][14]. Core Insights - The company achieved a record revenue of RMB 3.27 billion in 2024, representing an 11.1% year-on-year growth, with a net profit of RMB 517 million, up 27.1% year-on-year [4][5]. - The electronic chemicals segment saw significant growth, with revenue reaching RMB 745 million, a 32.63% increase from the previous year, and its share of total revenue rising to 22.81% from 18.82% [5][6]. - The semiconductor materials segment reported a remarkable 50.43% growth in revenue, driven by strong performance in various photolithography products [6][8]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of RMB 3.27 billion, with a net profit of RMB 517 million, leading to a cash dividend proposal of RMB 0.5 per share, totaling RMB 298 million [4][5]. - The revenue growth rate for 2024 is projected at 11.10%, with further growth expected in subsequent years [9]. Business Segments - The main business segments include specialty materials for automotive and tires, electronic chemicals, and fully biodegradable materials [5]. - The electronic chemicals segment is expanding rapidly, with ongoing projects expected to contribute to future revenue growth [5][8]. Future Projections - The company forecasts net profits of RMB 601 million, RMB 735 million, and RMB 799 million for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 32, 26, and 24 [9][10]. - Revenue is expected to continue growing, with projections of RMB 3.67 billion in 2025 and RMB 4.24 billion in 2027 [9].