China Catalyst (SH:688267) Great Wall Securities·2025-06-09 08:28Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by more than 15% in the next six months [5][21]. Core Views - The increase in orders from BASF has significantly boosted the company's performance, and there is optimism regarding the continuous enrichment of the company's product matrix [1][2]. - The company is expanding its industrial chain both vertically and horizontally, enhancing existing product advantages while diversifying its product offerings [9][10]. Financial Performance - The company's revenue for 2024 is projected to be 667 million yuan, a year-on-year increase of 21.23%, with a net profit of 146 million yuan, up 89.21% year-on-year [1]. - For 2025, the company expects revenues of 783 million yuan and a net profit of 190 million yuan, representing year-on-year growth rates of 17.5% and 30.8%, respectively [11]. - The company's return on equity (ROE) is expected to improve from 2.9% in 2023 to 8.0% by 2027 [1][11]. Product and Market Development - The company has established a deep cooperation with BASF, which has led to a significant increase in sales of mobile source denitrification molecular sieves, contributing to a 50.03% year-on-year revenue growth from this segment [2][9]. - The company is actively developing new markets in Southeast Asia and India while strengthening its domestic market presence in regions like Northwest and South China [10][11]. Cost and Expense Management - In 2024, the company's sales expenses increased by 25.91%, while management expenses decreased by 18.60%, indicating a focus on cost control [3]. - The financial expenses saw a significant decline of 94.31%, reflecting improved financial management [3]. Cash Flow and Financial Health - The net cash flow from operating activities for 2024 is expected to be 188 million yuan, a year-on-year increase of 75.99% [4]. - The company's cash and cash equivalents at the end of the period are projected to be 153 million yuan, down 43.24% year-on-year, indicating a need for careful cash management [4].