XINHUA CHEMICAL(603867) ZHESHANG SECURITIES·2025-05-13 07:45Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's performance in 2024 was under pressure due to declining profitability in the organic solvent segment, but there is optimism for future growth in the fragrance and lithium resource businesses [3][4] - The company achieved a revenue of 2.966 billion yuan in 2024, a year-on-year increase of 14.22%, while the net profit attributable to shareholders was 227 million yuan, a decrease of 10.18% [2][3] - The company has established a strong position in the synthetic fragrance market and is expanding its production capacity in both Ningxia and Jiangsu, which is expected to enhance its competitive edge [4][5] Financial Summary - In 2024, the company reported a revenue of 29.66 billion yuan, with a net profit of 2.27 billion yuan, and a return on equity of 10.19% [2][3] - For Q1 2025, the company achieved a revenue of 7.65 billion yuan, a year-on-year increase of 2.81%, and a net profit of 0.72 billion yuan, a decrease of 5.98% [2][3] - The projected net profits for 2025, 2026, and 2027 are 3.07 billion yuan, 3.75 billion yuan, and 4.52 billion yuan respectively, with corresponding EPS of 1.59, 1.94, and 2.35 yuan [10][12]