Bailong Chuangyuan(SH:605016) Bank of China Securities·2025-05-20 02:07Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company has demonstrated significant growth potential, particularly in the functional sugar sector, with a reported revenue of RMB 1.15 billion in 2024, representing a year-on-year increase of 32.64% [4][8] - The gross profit margin has improved, reaching 33.65% in 2024, up 0.92 percentage points year-on-year, and further increasing to 39.74% in Q1 2025, up 5.99 percentage points year-on-year [8][11] - The company is expected to continue its growth trajectory with projected earnings per share (EPS) of RMB 1.05, RMB 1.34, and RMB 1.63 for 2025, 2026, and 2027 respectively, corresponding to price-to-earnings (PE) ratios of 25.8, 20.2, and 16.6 [5][7] Financial Performance Summary - In 2024, the company achieved total revenue of RMB 1,151.65 million, with a net profit of RMB 245.60 million, reflecting a growth rate of 27.26% compared to 2023 [9] - The fourth quarter of 2024 saw a revenue of RMB 331.26 million, a year-on-year increase of 54.46%, with a net profit of RMB 63.01 million, up 21.97% year-on-year [10] - For Q1 2025, the company reported revenue of RMB 313.30 million, a 24.27% increase year-on-year, and a net profit of RMB 81.42 million, up 52.06% year-on-year [11] Growth Drivers - The company is set to benefit from the full production of new projects, including a soluble dietary fiber project and a crystallized sugar project, which are expected to enhance its production capacity and profitability [8][9] - The demand for dietary fibers, prebiotics, and healthy sweeteners is anticipated to drive revenue growth, with dietary fiber revenue expected to grow over 40% in 2024 [8][9] - The company is actively expanding its product portfolio, with plans to launch new products such as isomaltulose and crystallized fructose in 2024, which are expected to contribute to revenue growth [8][9]