SUNWAY(SZ:002469) Tianfeng Securities·2025-05-11 10:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.59 CNY, while the current price is 8.79 CNY [6]. Core Views - The company has significant growth potential driven by its chemical business, which serves as a stabilizing force for performance and a catalyst for stock price appreciation [1][14]. - The acquisition of Nuoao Chemical has substantially improved the company's financials, transitioning it from a pure engineering firm to a dual-driven model of "engineering + chemicals" [14]. - The company is the largest producer of n-propanol in China, with a production capacity of 100,000 tons/year, which allows it to benefit from price increases in chemical products [22][36]. Summary by Sections Chemical Industry - The chemical segment is expected to contribute significantly to revenue, with n-propanol sales projected to account for 55% of total revenue by 2024 [1][14]. - The company has a flexible production line that can switch raw materials to produce higher-margin products, mitigating the impact of price fluctuations [1][26]. Engineering Business - The company leads in sulfur recovery device contracts, with a total of 240 sets designed and constructed, amounting to a capacity of 12.83 million tons/year [2]. - Significant projects like the Luyou Luyuan project, with a total investment of 24.5 billion CNY, are expected to enhance revenue recognition in 2025 [2]. Financial Performance - The company plans to distribute a cash dividend of 260 million CNY for 2024, with a dividend payout ratio of 98.8%, resulting in a dividend yield of 4.6% [3][24]. - The company has a strong cash position, with total cash of 1.8 billion CNY and a low debt ratio of 17.85%, indicating a high safety margin [3][24]. Future Growth Potential - The company is expanding its production capacity with new projects in high-end materials, including 50,000 tons/year of iso-octanoic acid and 15,000 tons/year of cellulose [4]. - Profit forecasts for 2025-2027 are 378 million CNY, 490 million CNY, and 600 million CNY respectively, indicating strong growth potential [4].