KORRUN(SZ:300577) HUAXI Securities·2025-12-30 01:57Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company plans to acquire the remaining minority stake in Shanghai Jiale, which is expected to enhance its performance significantly [2][3] - The acquisition will increase the company's holding in Shanghai Jiale from 69.4% to 81.4%, and ultimately to 100% after the completion of the transaction [3] - The estimated profit increase from the acquisition is projected to be around 27 million yuan for the year 2026 [3] Financial Summary - The company reported a total revenue of 3,105 million yuan for 2023, with a year-on-year growth of 13.3% [6] - The projected revenues for 2024, 2025, 2026, and 2027 are 4,240 million yuan, 4,781 million yuan, 5,299 million yuan, and 5,810 million yuan respectively, with growth rates of 36.6%, 12.8%, 10.8%, and 9.6% [6] - The net profit for 2023 was 116 million yuan, with a significant year-on-year increase of 146.5% [6] - The projected net profits for 2024, 2025, 2026, and 2027 are 381 million yuan, 369 million yuan, 504 million yuan, and 604 million yuan respectively [6] - The earnings per share (EPS) for 2023 was 0.48 yuan, with projections of 1.59 yuan, 1.54 yuan, 2.10 yuan, and 2.52 yuan for the following years [6] Investment Recommendations - The short-term outlook suggests that the acquisition of Jiale's minority stake will likely enhance earnings [4] - In the medium term, there is still room for improvement in the net profit margins for both B2B bag manufacturing and Jiale [4] - The change in operational control in the B2C segment is expected to provide additional profit enhancement opportunities [4] - The target price remains unchanged, with the stock trading at a price-to-earnings (PE) ratio of 14, 10, and 8 for the years 2025, 2026, and 2027 respectively [4]