华宏科技：Q1利润大幅改善，期待稀土产能落地释放高业绩弹性-20250505

Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company has shown significant improvement in Q1 profits, turning losses into gains, with a revenue of 5.576 billion yuan in 2024, a year-on-year decrease of 19.0%. However, excluding goodwill impairment of 334 million yuan, the operational performance has greatly improved compared to 2023 [1]. - The company is positioned as a leader in the recycling resource sector, with strong technical and business integration advantages. The recovery of rare earth prices and the subsequent capacity release are expected to drive rapid growth in performance [3]. - The rare earth industry has a promising outlook, with the company expected to produce over 12,000 tons of recycled rare earth oxides in 2024, leading the industry in capacity [2]. Financial Performance Summary - In 2024, the company achieved a gross margin of 6.6%, an increase of 2.8 percentage points year-on-year, while the net margin was -6.3%, down 3.5 percentage points [2]. - The company reported a net cash flow from operating activities of 90 million yuan in 2024, a decrease of 83.9% year-on-year, primarily due to increased procurement expenses related to the expansion of rare earth recovery and magnetic material businesses [2]. - The forecast for net profit for 2025, 2026, and 2027 is 129 million yuan, 231 million yuan, and 324 million yuan respectively, with corresponding P/E ratios of 33.0, 18.4, and 13.1 [3][4].