Shanghai Huayi (SH:600623) Guohai Securities·2025-06-18 15:08Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][8]. Core Insights - The company, Huayi Group, operates under five core diversified business segments and plans to acquire a 60% stake in San Aifu, enhancing its growth potential in the fine fluorochemical sector [5][6][8]. - In 2024, Huayi Group achieved a revenue of 44.6 billion yuan, reflecting a year-on-year growth of 9.3%, and a net profit of 910 million yuan, up by 5.8% [5]. - The acquisition of San Aifu, a top 20 global fluorochemical company, is expected to strengthen Huayi's position in the fine fluorochemical market and expand its new materials product matrix [6][8]. Financial Performance - The company reported a total market capitalization of approximately 16.09 billion yuan and a circulating market capitalization of about 14.13 billion yuan as of June 18, 2025 [4]. - The projected revenues for 2025, 2026, and 2027 are estimated at 45.83 billion yuan, 47.16 billion yuan, and 48.41 billion yuan, respectively, with corresponding net profits of 938 million yuan, 1.14 billion yuan, and 1.23 billion yuan [8][10]. - The company has a cash dividend plan for 2024, proposing a distribution of 0.18 yuan per share, resulting in a cash dividend ratio of 41.96% [7]. Business Strategy - Huayi Group focuses on a dual-core business model of "manufacturing + services" and aims to integrate its upstream and downstream supply chains [5]. - The company is committed to enhancing its core business in chemicals while aligning with national strategies and regional development initiatives [7].