Valiant(SZ:002643) EBSCN·2025-04-28 10:18Investment Rating - The report maintains a "Buy" rating for Wanrun Co., Ltd. (002643.SZ) [1] Core Views - The company experienced a revenue decline of 14.22% year-on-year in 2024, with total revenue of 36.93 billion yuan and a net profit attributable to shareholders of 2.46 billion yuan, down 67.72% year-on-year [5][6] - The decrease in revenue is attributed to reduced sales of zeolite products and impairment losses affecting performance, particularly in Q4 2024 [6] - The company is expected to start production at the Penglai project in the first half of 2025, which will significantly enhance its functional materials capacity [7] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 36.93 billion yuan, a decrease of 14.22% from the previous year, and a net profit of 2.46 billion yuan, down 67.72% [5] - The Q4 2024 results showed a revenue of 9.31 billion yuan, a year-on-year decrease of 17.62%, and a net loss of 49.67 million yuan [5] - For Q1 2025, the company achieved a revenue of 8.61 billion yuan, down 8.17% year-on-year, but turned a profit with a net profit of 79.87 million yuan [5] Business Segments - The functional materials segment generated revenue of 30.2 billion yuan in 2024, down 10.3%, with a gross margin decline of 4.0 percentage points to 40.0% [6] - The life sciences and pharmaceutical products segment saw revenue drop by 28.7% to 6.29 billion yuan, but its gross margin improved by 1.9 percentage points to 38.2% [6] R&D and Future Prospects - The company increased R&D spending by 16.0% to 4.23 billion yuan in 2024, with an R&D expense ratio rising to 11.5% [6] - The Penglai project, initiated in 2022, is expected to enhance the company's production capacity significantly upon its completion in 2025 [7] Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been revised downwards due to reduced demand for key products, with expected net profits of 365 million yuan, 455 million yuan, and 515 million yuan respectively [8][9] - The report maintains a "Buy" rating based on the successful development and customer integration of new products in display materials and new energy materials [8]