HNZK Electric.(300035) Bank of China Securities·2025-05-07 08:54Investment Rating - The report maintains a "Buy" rating for the company [4][6] Core Views - The company has shown significant growth in net profit for both the 2024 annual report and the 2025 Q1 report, with a notable increase in the anode business and potential for overseas market expansion [4][9] - The forecasted earnings per share for 2025-2027 have been adjusted to 0.91, 1.17, and 1.46 RMB respectively, reflecting a positive outlook for the company's performance [6][8] Summary by Sections Financial Performance - The company reported a revenue of 5,581 million RMB for 2024, a year-on-year increase of 13.72%, and a net profit of 303 million RMB, up 626.56% [9][10] - In Q1 2025, the company achieved a revenue of 1,598 million RMB, a 49.92% increase year-on-year, with a net profit of 134 million RMB, reflecting a growth of 465.80% [11] Business Development - The anode materials business has seen a significant increase in output, with a total shipment of 225,700 tons in 2024, representing a 55.66% year-on-year growth [9] - The company has successfully developed international clients, including a well-known battery subsidiary of an international automotive company, and is expanding its production capacity in Morocco [9] Valuation Metrics - The adjusted earnings per share forecasts for 2025, 2026, and 2027 are 0.91, 1.17, and 1.46 RMB, with corresponding price-to-earnings ratios of 17.1, 13.3, and 10.6 [6][8] - The company’s projected revenue growth rates for 2025, 2026, and 2027 are 23.8%, 20.2%, and 21.5% respectively [8][12]