SUNWAY(SZ:002469) Tianfeng Securities·2025-05-11 12:23Investment 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 [1][22]. 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 contracts, such as the 1.307 billion CNY order from Beifang Huajin, are expected to lead to concentrated 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]. - As of Q1 2025, the company holds 1.8 billion CNY in cash with a low debt ratio of 17.85%, indicating a strong financial safety margin [3][24]. Future Growth Potential - The company is expanding its high-end materials projects, with new capacities for isooctanoic acid and cellulose derivatives expected to contribute to revenue growth [4]. - Profit forecasts for 2025-2027 are 3.8 billion CNY, 4.9 billion CNY, and 6.0 billion CNY respectively, indicating a positive growth trajectory [4].