Red Avenue New Materials(603650) 太平洋·2025-04-23 01:40Investment 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]. Revenue and Profit Forecast - 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 times [8][9]. - Revenue is expected to grow to RMB 3.67 billion in 2025, with a growth rate of 12.33%, and further to RMB 4.24 billion by 2027, with a growth rate of 5.71% [9][10]. Business Segments Performance - The main business segments include specialty materials for automotive and tires, electronic chemicals, and fully biodegradable materials, with electronic chemicals showing the most significant growth [5][6]. - The company is actively expanding its electronic chemicals business, with multiple projects under construction and expected to contribute to future revenue growth [5][8]. Financial Metrics - The company reported a gross margin of 23.68% in 2023, projected to improve to 24.84% in 2024, and further increase in subsequent years [11]. - The return on equity (ROE) is expected to rise from 11.93% in 2023 to 21.91% by 2027, indicating improved profitability and efficiency [11].