Hylink(SH:603825) China Post Securities·2025-06-30 07:31Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [9][15]. Core Insights - The company has undergone a change in controlling shareholder, which has led to improvements in governance and the establishment of a joint venture to expand into the cultural tourism business, presenting new growth opportunities [4][6][9]. - The company reported a significant decline in revenue for 2024, with a 63.07% year-on-year decrease, primarily due to business restructuring and a drop in income across various segments [4][5]. - The financial outlook for the company is projected to improve, with expected revenues of 33 billion, 43 billion, and 47 billion yuan for 2025, 2026, and 2027 respectively, alongside a gradual return to profitability [9][11]. Company Overview - The latest closing price of the company's stock is 12.60 yuan, with a total market capitalization of 32 billion yuan [3]. - The company has a high asset-liability ratio of 90.8%, indicating significant leverage [3][5]. - The largest shareholder is Hunan Xiangjiang New District Development Group, which holds an 18.81% stake [3][6]. Financial Performance - In 2024, the company reported a revenue of 2.03 billion yuan and a net loss attributable to shareholders of 547 million yuan [4][11]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are expected to be 0.11 yuan, 0.30 yuan, and 0.47 yuan respectively, reflecting a recovery in profitability [9][11]. - The company’s EBITDA is projected to turn positive in 2025, with estimates of 71.59 million yuan, indicating a potential turnaround in operational performance [11][14].