JJHB(SH:603279) China Post Securities·2025-12-23 03:27Investment Rating - The report maintains a "Buy" rating for the company [7][10]. Core Insights - The company is a leading manufacturer of filter presses with over 40% market share in China, focusing on providing complete solutions for solid-liquid separation [3][17]. - The company is experiencing short-term pressure on operating performance, but cash flow has significantly improved, with operating cash flow exceeding profits in recent quarters [4][20][30]. - The filter press market in China is valued at approximately 102.1 billion yuan, with a global market size projected at around 2.63 billion USD in 2024 [4][45][46]. Summary by Relevant Sections Company Overview - The company, founded in 1988, specializes in the production and sales of filtering equipment and is recognized as a champion in the manufacturing sector [3][17]. - It has a stable shareholding structure, with major shareholders showing a strong willingness to return profits to shareholders through dividends [34]. Market and Industry Analysis - The demand for filter presses is expected to rebound, particularly in the mineral processing sector, driven by high capital expenditures in non-ferrous metals [5][47]. - The environmental sector is also anticipated to see increased demand for filter presses due to stricter regulations and the need for effective sludge treatment [53][55]. Financial Performance - The company’s revenue and net profit are projected to face challenges in 2024 and 2025, primarily due to declining capital expenditures in the lithium battery sector [4][10]. - Revenue forecasts for 2025-2027 are 55.14 billion, 61.81 billion, and 68.35 billion yuan, with corresponding net profits of 5.59 billion, 7.11 billion, and 8.91 billion yuan [10][11]. Competitive Advantages - The company maintains a strong competitive position in the industry, with a focus on complete equipment solutions and significant growth potential in overseas markets [9][10][34]. - The company’s complete equipment solutions are expected to continue growing rapidly, with projected revenues exceeding 800 million yuan in 2024, representing over 90% year-on-year growth [8][9].