Hengtong(SH:600226) Minsheng Securities·2025-04-23 05:47Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [4][7]. Core Insights - The company's revenue for 2024 reached 1.335 billion yuan, a year-on-year increase of 106.0%, with a net profit attributable to shareholders of 189 million yuan, up 14.3% year-on-year [1]. - The copper foil business is identified as the core driver of revenue growth, with significant contributions from the electrolytic copper foil segment, which saw a revenue increase of 1477.1% in 2024 [2]. - The company has successfully developed high-value-added high-end copper foil products, including high-temperature extended copper foil and low-profile copper foil, which are expected to drive future growth [4]. Revenue Breakdown - In 2024, the revenue breakdown is as follows: - Electrolytic copper foil: 683 million yuan, accounting for 51.2% of total revenue - Electric and steam: 304 million yuan, 22.8% of total revenue - Veterinary medicine products: 292 million yuan, 21.9% of total revenue - Pesticide products: 21 million yuan, 1.6% of total revenue [2]. Profitability and Cost Management - The company has effectively managed costs, with a sales expense ratio of 1.65% and a management expense ratio of 5.77% in 2024, both showing a decrease compared to the previous year [3]. - The gross margin for the electrolytic copper foil business was -5.35% in 2024, but it is expected to recover in the future as industry processing fees stabilize [3]. Future Outlook - The company is focusing on "import substitution and high-end iteration" in its copper foil business, with plans to expand production capacity based on market demand [4]. - Future profit projections estimate net profits of 279 million yuan in 2025, 356 million yuan in 2026, and 446 million yuan in 2027, with corresponding PE ratios of 31, 24, and 19 [4][6].