SHANYING INTERNATIONAL(600567)2025-05-21 10:45Investment Rating - The report assigns a "Recommend" rating to the company, with a target price of 1.96 CNY per share [1]. Core Views - The company reported a revenue of 29.23 billion CNY in 2024, a slight decrease of 0.4% year-on-year, and a net profit attributable to shareholders of -0.45 billion CNY, indicating a shift from profit to loss [1]. - In Q1 2025, the company achieved a revenue of 6.77 billion CNY, reflecting a year-on-year increase of 1.5%, but the net profit attributable to shareholders decreased by 16.0% year-on-year to 0.03 billion CNY [1]. - The company is recognized as a leading player in the domestic boxboard paper market, leveraging its integrated supply chain advantages to develop its paper, packaging, and fiber recycling businesses [1]. Financial Summary - 2024 Financial Performance: - Total revenue: 29.23 billion CNY - Net profit: -0.45 billion CNY - Gross margin: 7.4%, down 2.5 percentage points year-on-year [1][7]. - 2025 Financial Projections: - Expected total revenue: 29.98 billion CNY, with a growth rate of 2.6% - Expected net profit: 0.216 billion CNY, with a growth rate of 147.8% [1][7]. - Key Financial Ratios: - Price-to-Earnings (P/E) ratio for 2025 is projected at 45 times, decreasing to 22 times by 2027 [1][7]. - Price-to-Book (P/B) ratio is set at 0.70 times for 2025 [1][7]. Business Strategy - The company is strategically exiting non-core businesses, having successfully divested 48.16% of its stake in Nordic Paper and completed the transfer of shares in Jiaxing Yinghuang for 546 million CNY, enhancing its financial strength and risk resilience [1]. - The company has optimized its debt structure, achieving a debt-to-asset ratio of 68.8% as of Q1 2025, a decrease of 2.6 percentage points from the end of Q1 2024 [1].