Shanghai Huayi (SH:600623) Orient Securities·2025-08-25 14:16Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 10.32 CNY based on a 24x PE ratio for comparable companies in 2025 [4]. Core Views - The company has shown steady revenue growth and ongoing optimization of its asset structure. Despite a slight decline in revenue and profit margins, the company has managed to achieve a small increase in net profit due to effective cost management and stable investment income [9]. - The acquisition of San Aifu, a leading domestic fluorochemical enterprise, is expected to enhance the company's competitiveness in emerging fields and facilitate its transition from a traditional chemical company to a high-end manufacturing and high-tech enterprise [9]. Financial Performance Summary - Revenue (CNY million): - 2023A: 40,856 - 2024A: 44,645 - 2025E: 44,438 - 2026E: 47,234 - 2027E: 47,969 - Year-on-Year Growth (%): 6.1%, 9.3%, -0.5%, 6.3%, 1.6% [6] - Operating Profit (CNY million): - 2023A: 1,594 - 2024A: 1,493 - 2025E: 1,442 - 2026E: 2,163 - 2027E: 2,265 - Year-on-Year Growth (%): -21.9%, -6.4%, -3.4%, 50.0%, 4.7% [6] - Net Profit Attributable to Parent Company (CNY million): - 2023A: 861 - 2024A: 911 - 2025E: 922 - 2026E: 1,278 - 2027E: 1,283 - Year-on-Year Growth (%): -32.8%, 5.8%, 1.2%, 38.7%, 0.4% [6] - Earnings Per Share (CNY): - 2023A: 0.41 - 2024A: 0.43 - 2025E: 0.43 - 2026E: 0.60 - 2027E: 0.60 [6] - Gross Margin (%): - 2023A: 8.3% - 2024A: 7.2% - 2025E: 7.8% - 2026E: 8.9% - 2027E: 9.2% [6] - Net Margin (%): - 2023A: 2.1% - 2024A: 2.0% - 2025E: 2.1% - 2026E: 2.7% - 2027E: 2.7% [6] - Return on Equity (%): - 2023A: 3.9% - 2024A: 4.0% - 2025E: 4.0% - 2026E: 5.3% - 2027E: 5.0% [6]