Valiant(SZ:002643) Dongxing Securities·2025-04-28 10:53Investment Rating - The report maintains a "Strong Buy" rating for Wanrun Co., Ltd. [2][5] Core Views - Wanrun Co., Ltd. experienced short-term pressure on performance, with a significant decline in revenue and net profit in 2024. The company reported a revenue of 3.693 billion yuan, down 14.22% year-on-year, and a net profit of 246 million yuan, down 67.72% year-on-year [3] - The company is actively expanding its product lineup in high-end materials, including polyimide materials and semiconductor manufacturing materials, which are expected to open up new growth opportunities [5] - The OLED business is developing well, with multiple proprietary OLED materials validated and supplied to downstream customers [4][5] Financial Performance Summary - In 2024, the functional materials segment saw a revenue decline of 10.30% to 3.019 billion yuan, primarily due to decreased market demand for zeolite environmental materials [3] - The life sciences and pharmaceutical products segment experienced a revenue drop of 28.65% to 629 million yuan, influenced by changes in customer demand for customized pharmaceutical intermediates [3] - The overall gross margin decreased by 2.68 percentage points to 39.81%, impacting net profit levels [3] - For Q1 2025, the company reported a revenue of 861 million yuan, down 8.17% year-on-year, but achieved a net profit of 80 million yuan, marking a turnaround from Q4 2024 [4] Profit Forecast and Valuation - The profit forecast for Wanrun Co., Ltd. for 2025 to 2027 is adjusted, with expected net profits of 356 million yuan, 404 million yuan, and 462 million yuan respectively, corresponding to EPS of 0.38, 0.43, and 0.50 yuan [5] - The current stock price corresponds to P/E ratios of 28, 24, and 21 for the years 2025, 2026, and 2027 respectively [5]