LIANHE TECHNOLOGY(002250) 中银国际·2025-05-29 05:18Investment Rating - The report upgrades the investment rating of the company to "Buy" from "Hold" due to the expected recovery in profitability and industry demand [2][7]. Core Views - The company is projected to turn a profit in 2024, with a significant year-on-year increase in net profit in Q1 2025. The report expresses optimism regarding the recovery of the agricultural protection industry and the orderly advancement of the company's product layout [2][10]. - The company plans to distribute a cash dividend of 0.2 RMB per 10 shares to all shareholders, indicating a commitment to returning value to investors [5][10]. Financial Performance Summary - In 2024, the company achieved revenue of 5.68 billion RMB, a decrease of 11.88% year-on-year, but net profit reached 103 million RMB, a substantial increase of 122.17% [10][11]. - For Q4 2024, the company reported revenue of 1.32 billion RMB, down 7.44% year-on-year, but net profit turned positive at 71 million RMB, a significant recovery from losses [12]. - In Q1 2025, the company recorded revenue of 1.51 billion RMB, a 3.02% increase year-on-year, and net profit soared to 50 million RMB, reflecting a remarkable growth of 1747.04% [13]. Business Segment Performance - The agricultural protection segment generated revenue of 3.59 billion RMB in 2024, down 15.39% year-on-year, but showed an increase in production and sales volume [10]. - The pharmaceutical business achieved revenue of 1.29 billion RMB, a decrease of 13.32% year-on-year, with ongoing efforts to expand client relationships and project validation [10]. - The functional chemicals segment saw a revenue increase of 61.82% year-on-year, reaching 306 million RMB, driven by growth in personal care and new energy products [10]. Profitability Metrics - The company's gross margin improved to 26.06% in 2024, up 6.20 percentage points year-on-year, while the net margin reached 2.67%, an increase of 9.33 percentage points [10]. - For Q1 2025, the gross margin was 26.15%, reflecting a slight year-on-year increase, while the net margin improved to 4.63% [10]. Future Projections - The report forecasts net profits for 2025, 2026, and 2027 to be 279 million RMB, 400 million RMB, and 514 million RMB respectively, with corresponding earnings per share of 0.31 RMB, 0.44 RMB, and 0.56 RMB [7][9].