Bailong Chuangyuan(SH:605016) Bank of China Securities·2025-05-20 02:45Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the company's stock price will outperform the benchmark index by more than 20% over the next 6-12 months [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, 1.34, and 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, which is a 52.06% increase 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 production capacity and profitability [8][9]. - The demand for dietary fibers, prebiotics, and healthy sweeteners is anticipated to grow, with dietary fiber revenue expected to increase by over 40% in 2024 [8][9]. - The company is actively expanding its product offerings, with plans to launch new products such as isomaltulose and crystallized fructose in 2024, which are expected to contribute to revenue growth [8].