HXG(SH:603112) Shenwan Hongyuan Securities·2026-03-02 11:29Investment Rating - The investment rating for Huaxiang Co., Ltd. is maintained at "Buy" [2][6]. Core Views - The company's performance for the year 2025 is expected to meet expectations, with total revenue projected at 4.129 billion yuan, a year-on-year increase of 8%, and net profit attributable to shareholders expected to reach 562 million yuan, a year-on-year increase of 19% [6]. - The fourth quarter of 2025 is anticipated to show accelerated performance, with expected revenue of 1.146 billion yuan, a 10% year-on-year increase, and net profit of 156 million yuan, a 21% year-on-year increase [6]. - The company is expected to face challenges in its compressor parts business due to a slowdown in the white goods industry, while the automotive parts business is projected to continue its growth trajectory [6]. Financial Data and Profit Forecast - Total revenue projections for the upcoming years are as follows: 2024: 3.828 billion yuan, 2025: 4.129 billion yuan, 2026: 4.742 billion yuan, and 2027: 5.248 billion yuan, with respective year-on-year growth rates of 17.3%, 7.9%, 14.9%, and 10.7% [5][8]. - Net profit attributable to shareholders is forecasted to be 471 million yuan in 2024, 562 million yuan in 2025, 708 million yuan in 2026, and 812 million yuan in 2027, with year-on-year growth rates of 21.0%, 19.4%, 26.0%, and 14.8% respectively [5][8]. - The company's gross margin is expected to improve from 21.7% in 2024 to 24.6% in 2027, indicating enhanced profitability [5].