HPGC(600664) HTSC·2025-04-29 07:10Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 4.95 [8][9][5] Core Views - The company reported revenue, net profit attributable to the parent, and net profit excluding non-recurring items for 2024 at RMB 161.8 million, RMB 6.3 million, and RMB 5.9 million respectively, representing year-on-year growth of 5%, 59%, and 80% [1] - The management team and operational reforms since the end of 2023 are expected to drive sustained profit growth and brand value reassessment [1] - Industrial revenue is projected to grow nearly 20% year-on-year in 2024, with expectations of double-digit growth from 2025 to 2027 [2] - The industrial net profit margin is expected to increase significantly in 2024, with a forecasted margin of 7.7% compared to 3.5% in 2023 [3] - The subsidiary, Renmin Tongtai, is facing revenue pressure with a projected decline of 3% year-on-year in 2024 [4] Summary by Sections Financial Performance - For Q1 2025, the company reported revenue of RMB 41.7 million, net profit attributable to the parent of RMB 2.1 million, and net profit excluding non-recurring items of RMB 2.0 million, reflecting year-on-year growth of 1%, 20%, and 28% respectively [1] - The company expects net profit attributable to the parent for 2025 to reach RMB 7.3 million, with a year-on-year growth of 16.5% [5] Revenue and Profitability - The industrial segment's revenue is expected to grow by 19% to RMB 62.8 million in 2024, with a strong performance in the health supplement category [2] - The industrial net profit margin is estimated to be 11.8% in Q1 2025, significantly up from previous periods due to cost reduction and efficiency improvements [3] Subsidiary Performance - Renmin Tongtai's revenue is projected to be RMB 100 million in 2024, down 3% year-on-year, with profits expected to decline by 27% due to market pressures [4] Valuation Metrics - The report provides a PE valuation of 17x for 2025, aligning with the median expectations of comparable companies [5] - The company’s market capitalization is reported at RMB 9.268 billion, with a closing price of RMB 3.68 as of April 28 [9]