Sanlian Hope(SZ:300384) Orient Securities·2025-05-12 03:23Investment Rating - The report maintains a "Buy" rating for the company with a target price of 21.66 CNY, based on a projected average PE of 19 times for comparable companies in 2025 [4][8]. Core Insights - The company has adjusted its profit forecasts for 2025-2027, predicting net profits of 364 million CNY, 406 million CNY, and 454 million CNY respectively, reflecting a growth trajectory despite a revenue decline in 2024 [4][11]. - The gross margin has significantly improved, with a reported gross margin of 46.2% in 2024, up by 6.5 percentage points year-on-year, indicating better cost management and pricing power [11]. - The company is actively pursuing opportunities in recycled materials, with successful project deliveries in chemical recycling technologies, which are expected to expand into new markets [11]. Financial Summary - The company's revenue for 2023 was 1,250 million CNY, with a projected decline to 1,074 million CNY in 2024, followed by a recovery to 1,206 million CNY in 2025 [6][13]. - The net profit for 2023 was 290 million CNY, with an expected increase to 318 million CNY in 2024 and further growth to 364 million CNY in 2025 [6][13]. - The earnings per share (EPS) are projected to rise from 0.91 CNY in 2023 to 1.00 CNY in 2024, reaching 1.14 CNY in 2025 [6][13]. - The company’s net profit margin is expected to remain strong, with projections of 30.2% in 2025 and 29.8% in 2027 [6][13].