KangLongDa(SH:603665) Tai Ping Yang·2025-05-24 00:15Investment Rating - The report maintains a "Buy" rating for the company 康隆达 (603665) with a target price based on the last closing price of 24.25 [1][4]. Core Insights - The company's main business has shown signs of recovery, with Q1 2025 performance exceeding expectations. The revenue for Q1 2025 reached 380 million, representing a 42.2% increase year-on-year, while the net profit turned positive at 114 million [4][5]. - The report highlights the successful ramp-up of production capacity at the Vietnam facility, which is expected to contribute significantly to revenue in 2025. The first phase of the project is projected to achieve full capacity, contributing around 1 billion in output value [5][6]. - The company has faced challenges in 2024, including losses primarily due to lithium salt business issues and goodwill impairment. However, these factors are expected to be resolved, allowing for a more robust performance in 2025 [4][5]. Financial Summary - For 2024, the company is projected to have a revenue of 1.52 billion, with a net loss of 486 million. In contrast, for 2025, revenue is expected to rise to 1.97 billion, with a net profit of 161 million, indicating a significant turnaround [8][12]. - The gross margin for 2024 was 16.8%, while it is expected to improve to 22.73% in 2025. The net profit margin is projected to shift from -31.9% in 2024 to 8.15% in 2025 [8][12]. - The report forecasts a steady growth in net profit for the years 2025 to 2027, with estimates of 161 million, 228 million, and 292 million respectively [8][12].