SDBH(SH:600966) Huachuang Securities·2025-05-21 10:25Investment Rating - The report maintains a "Recommendation" 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 for 2024 is projected to be 1.893 billion CNY, with a growth rate of 1.3% [4]. - The net profit attributable to shareholders for 2024 is expected to be 176 million CNY, reflecting a decline of 3.3% [4]. - The earnings per share (EPS) for 2024 is estimated at 0.13 CNY, with a price-to-earnings (P/E) ratio of 35 [4]. - The gross profit margin for 2024 is reported at 9.6%, a decrease of 1.2 percentage points year-on-year [8]. - The company’s overseas sales are expected to continue growing, with a significant increase of 83.8% in foreign revenue in 2024 [8]. Future Outlook - The company is expected to see a recovery in net profit growth, with projections of 215 million CNY in 2025, representing a growth rate of 22.4% [4][8]. - The forecast for net profit attributable to shareholders for 2026 and 2027 is 352 million CNY and 445 million CNY, respectively, indicating substantial growth rates of 63.7% and 26.5% [4][8]. - The report highlights the company's strong position in the white card paper industry and its potential for profit recovery as domestic demand improves [8].