Kings(SH:603505) Minmetals Securities·2025-05-06 07:53Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company experienced significant revenue growth in 2024, with a revenue of 2.752 billion yuan, up 45.2% year-on-year, but the net profit attributable to shareholders decreased by 26.3% to 257 million yuan [2][4] - In Q1 2025, the company reported a revenue of 859 million yuan, a year-on-year increase of 91.7%, and a net profit of 67 million yuan, up 10.5% year-on-year [1][2] - The revenue growth in 2024 was primarily driven by the significant increase in sales of anhydrous hydrofluoric acid, which reached 117,500 tons, generating 1.036 billion yuan in revenue, a 300.4% increase year-on-year [2] - The decline in net profit was attributed to the drop in lithium prices affecting the company's lithium projects, leading to losses exceeding 60 million yuan from lithium-related projects [2][4] Financial Summary - The company forecasts continued revenue growth in 2025, with expected revenues of 3.75 billion yuan, a growth rate of 36.2% [12] - Projected net profits for 2025, 2026, and 2027 are 587 million yuan, 662 million yuan, and 722 million yuan respectively, indicating a recovery in profitability [4][12] - The company's gross margin is expected to improve due to cost reductions and the ramp-up of production from the Mongolia project, with a target of 100,000 to 200,000 tons of fluorite products in 2025 [3][4]