INTCO RECYCLING(SH:688087) Soochow Securities·2025-05-05 06:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to achieve a revenue growth of 57% in 2024, driven by strong growth in high-value utilization products, with the revenue from finished frames and decorative building materials increasing to 76% of total revenue [7] - The company has a robust global layout and is a pioneer in the recycled plastic industry, focusing on high-value end products and expanding its product categories [7] - The earnings forecast for 2025-2026 has been revised upwards, with net profit estimates increased to 3.86 billion and 4.58 billion respectively, and a projected net profit of 5.41 billion for 2027 [7] Financial Performance Summary - For 2024, total revenue is projected at 29.24 billion yuan, with a year-on-year growth of 19.09%, and a net profit of 3.07 billion yuan, reflecting a 57.07% increase [7] - The sales gross margin for 2024 is expected to be 24.80%, with a net profit margin of 10.51% [7] - The company’s operating cash flow is anticipated to significantly increase, with a net cash flow from operating activities of 956.13 million yuan in Q1 2025, representing a 44.46% increase [7] Product and Market Insights - The revenue from finished frames reached 1.31 billion yuan in 2024, with a 24.37% increase, while decorative building materials revenue grew by 31.55% to 916 million yuan [7] - The company is actively developing new products and expanding marketing channels, which is expected to contribute to steady revenue growth [7] - The company has established a recycling system for bottles and bricks, improving production processes and global marketing channels, which is expected to enhance product gross margins [7]