Kings(SH:603505) Shenwan Hongyuan Securities·2025-12-22 08:41Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company plans to acquire a 15.71% stake in Zhejiang Noah Fluorochemical for 257 million yuan, becoming its second-largest shareholder, which will help expand into the high-end fine fluorochemical sector [7] - The acquisition is strategically aimed at leveraging the company's upstream resources in fluorite and hydrogen fluoride to enhance its position in the downstream fine fluorochemical market [7] - The server liquid cooling market is expected to grow rapidly, with projections indicating that the market size in China will increase from approximately 16 billion yuan to over 100 billion yuan from 2024 to 2030 [7] - The company anticipates significant growth in its fluorite production and profitability from its ongoing projects, including the Baogang Jinshi project and the Mongolian fluorite resource project [7] Financial Data and Profit Forecast - Total revenue is projected to grow from 2,752 million yuan in 2024 to 5,003 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 36.1% [6] - The net profit attributable to the parent company is expected to increase from 257 million yuan in 2024 to 763 million yuan in 2027, reflecting a significant growth trajectory [6] - The earnings per share (EPS) is forecasted to rise from 0.28 yuan in 2025 to 0.91 yuan in 2027, indicating strong profitability potential [6]