Huangma Technology(SH:603181) Bank of China Securities·2025-09-04 09:47Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [1][6]. Core Views - The company has demonstrated steady growth in its performance, with a focus on the surfactant sector, and the report expresses confidence in its ongoing development in this area [1][9]. - The company reported a revenue of 1.194 billion RMB for the first half of 2025, representing a year-on-year increase of 7.67%, and a net profit attributable to shareholders of 219 million RMB, up 14.67% year-on-year [9][10]. Financial Performance Summary - For the first half of 2025, the company achieved a revenue of 1.194 billion RMB, with a gross margin of 27.10% and a net margin of 18.31% [9][10]. - The second quarter of 2025 saw a revenue of 590.65 million RMB, reflecting a 2.32% year-on-year growth, while the net profit for the same period was 116.89 million RMB, up 13.72% year-on-year [11]. - The company’s main products, including specialty functional and polymer material surfactants, saw production increase by 10.25% and sales increase by 11.96% year-on-year in the first half of 2025 [9][10]. Market Position and Industry Outlook - The company is positioned as a leading player in the domestic surfactant industry, with a significant production capacity and a diverse product range [6][9]. - The global surfactant market is projected to grow from approximately 26 billion USD in 2021 to 34 billion USD by 2026, indicating a stable growth trajectory for the industry [9]. - The report highlights a trend of market consolidation within the surfactant industry, with smaller companies facing challenges due to regulatory pressures and competition, which may benefit larger, more established firms like the company in focus [9][10]. Valuation Metrics - The report maintains profit forecasts for the company, estimating net profits of 497 million RMB, 577 million RMB, and 672 million RMB for 2025, 2026, and 2027 respectively, with corresponding earnings per share of 0.84 RMB, 0.98 RMB, and 1.14 RMB [6][8]. - The price-to-earnings ratios are projected to be 19.5, 16.8, and 14.4 for the years 2025, 2026, and 2027 respectively, indicating a favorable valuation trend [6][8].