Hymson(SH:688559) GUOTAI HAITONG SECURITIES·2026-01-28 05:45Investment Rating - The investment rating for the company is "Buy" [6][19] Core Views - The company's performance in 2025 is under pressure, but it is expected to turn profitable in Q4 2025, indicating a potential inflection point. The company has a sufficient order backlog and is expanding in non-lithium sectors, which may lead to improved performance in the future [2][12]. Financial Summary - Total revenue for 2023 is projected at 48.05 billion, with a decrease to 45.25 billion in 2024, followed by a further decline to 43.72 billion in 2025. However, revenue is expected to rebound to 60.12 billion in 2026 and 74.82 billion in 2027, reflecting a growth rate of 37.5% and 24.4% respectively [4][13]. - The net profit attributable to the parent company is forecasted to be 322 million in 2023, dropping to -163 million in 2024 and -857 million in 2025, before recovering to 483 million in 2026 and 803 million in 2027 [4][13]. - Earnings per share (EPS) is expected to be 1.30 in 2023, dropping to -0.66 in 2024 and -3.46 in 2025, then recovering to 1.95 in 2026 and 3.24 in 2027 [4][13]. - The return on equity (ROE) is projected to be 13.7% in 2023, declining to -5.1% in 2024 and -36.5% in 2025, before improving to 17.1% in 2026 and 22.1% in 2027 [4][13]. Market Data - The current stock price is 64.01, with a target price set at 88.22, indicating a potential upside [6][7]. - The market capitalization is approximately 15.86 billion, with a total share count of 248 million [7][8]. Summary of Business Outlook - The company is experiencing pressure due to cyclical fluctuations in downstream industries, but it is expected to achieve profitability in Q4 2025. The recovery is supported by a significant increase in orders, particularly in the lithium battery sector, with new orders amounting to approximately 4.42 billion, a year-on-year increase of 117.5% [12][13]. - The company is diversifying its business across multiple sectors, including photovoltaic technology and solid-state batteries, which are anticipated to contribute to future growth [12][13].