Keda Group(SH:600499) Changjiang Securities·2025-04-30 10:17Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company achieved a revenue of 3.8 billion yuan in Q1 2025, representing a year-on-year growth of 47%. The net profit attributable to shareholders was approximately 350 million yuan, up 11% year-on-year, while the net profit excluding non-recurring items was about 320 million yuan, reflecting a 17% increase [2][4]. Summary by Sections Business Performance - The company experienced a significant operational turning point, with Q1 revenue growth primarily driven by high increases in overseas building materials revenue, while machinery equipment revenue remained relatively stable. The gross margin for Q1 was approximately 29.7%, an increase of 2.8 percentage points year-on-year, mainly due to significant improvements in the gross margin of overseas building materials [9]. - The company’s net profit for Q1 was 350 million yuan, an 11% increase year-on-year. After adjusting for exchange losses, the net profit would be 410 million yuan, representing a growth of over 30% [9]. Overseas Building Materials - The overseas building materials segment exceeded expectations, with revenue growth driven by increases in both volume and price of tiles, as well as the expansion of glass business. The company holds a leading position in the African building materials market, benefiting from production, distribution, and brand advantages [9]. - The company’s previous large-scale capital expenditures have laid the foundation for capacity increases over the next two years, with new projects expected to contribute to revenue growth [9]. Building Machinery - The building machinery segment saw a decline in revenue due to cyclical industry demand slowdown and adjustments in client investment rhythms. However, the company is positioned as a global duopoly in ceramic machinery, with expected stable revenue in 2025 [9]. Investment in Lithium Industry - The investment in Blueco Lithium maintained stable returns, with Q1 production of lithium carbonate at approximately 8,500 tons and sales of about 8,100 tons. Despite a 33% year-on-year decline in average price, the segment still achieved significant profitability [9]. Market Position and Growth Potential - The company is recognized as a rare leading player in the African market, combining low valuation with certain growth prospects. The company is expected to benefit from urbanization trends in Africa, with projected net profits of approximately 1.58 billion yuan and 1.73 billion yuan for 2025 and 2026, respectively, corresponding to valuations of 10 and 9 times [9].