SDBH(SH:600966) Huachuang Securities·2025-05-21 09:45Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 5.2 CNY per share [2][8]. Core Views - The company's profitability is under pressure, and it is anticipated that demand will recover in the future [2][8]. - In 2024, the company achieved revenue of 1.893 billion CNY, a year-on-year increase of 1.3%, while net profit attributable to shareholders decreased by 3.3% to 176 million CNY [2][4]. - For Q1 2025, the company reported revenue of 456 million CNY, a 3.8% increase year-on-year, but net profit attributable to shareholders fell by 46.9% to 5 million CNY [2][4]. Financial Performance Summary - The company’s total revenue is projected to grow from 1.893 billion CNY in 2024 to 2.353 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 6.3% [4][9]. - The net profit attributable to shareholders is expected to increase significantly from 176 million CNY in 2024 to 445 million CNY in 2027, reflecting a CAGR of 26.5% [4][9]. - The earnings per share (EPS) is forecasted to rise from 0.13 CNY in 2024 to 0.33 CNY in 2027 [4][9]. Product and Market Analysis - In 2024, the company generated revenue from various products: white card paper (1.154 billion CNY), cultural paper (474 million CNY), gypsum face paper (60 million CNY), and corrugated paper (163 million CNY) [2][8]. - The company’s sales volume for white card paper, cultural paper, gypsum face paper, and corrugated paper saw year-on-year increases of 3.5%, 16.4%, 40.2%, and a decrease of 2.8%, respectively [2][8]. - The overseas market showed strong growth, with revenue increasing by 83.8% year-on-year to 296 million CNY in 2024, while domestic revenue decreased by 7.8% to 1.555 billion CNY [2][8]. Profitability and Cost Management - The company’s gross margin for 2024 was 9.6%, a decrease of 1.2 percentage points year-on-year [2][8]. - The company maintained stable expense ratios for sales, management, R&D, and financial expenses, resulting in a net profit margin of 0.9% for 2024 [2][8]. - In Q1 2025, the gross margin remained at 9.6%, with a year-on-year decrease of 3.7 percentage points [2][8]. Investment Outlook - The company is recognized as a leader in the white card paper industry, with a stable operation and promising overseas market expansion [2][8]. - The report anticipates that if domestic demand recovers, it could further enhance profit margins [2][8].