HIUV(SH:688680)2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting its stock price to outperform the benchmark index by 10%-20% over the next 6-12 months [10][15]. Core Views - The company reported a significant loss in 2023, with a net profit of -236 million RMB, a decrease of 572.05% year-on-year. The adjusted net profit for Q4 2023 was -161 million RMB [4][5]. - The decline in profit is attributed to falling prices of EVA raw materials and inventory impairments, with EVA particle prices dropping approximately 23% since the beginning of 2023 [4][5]. - Despite the challenges, there are signs of recovery as EVA particle and film prices have started to rebound in 2024, indicating potential improvement in the company's fundamentals [4][5]. - The company has increased its share buyback amount from 30-50 million RMB to 70-90 million RMB, which is expected to boost investor confidence [4][5]. Financial Summary - The company's total revenue for 2023 is projected at 4,874 million RMB, reflecting an 8.2% decrease compared to 2022. Revenue is expected to grow to 5,341 million RMB in 2024 and 6,601 million RMB in 2025 [5][6]. - The adjusted earnings per share (EPS) for 2023 is forecasted at -2.81 RMB, with a recovery to 1.76 RMB in 2024 and 2.54 RMB in 2025 [5][6]. - The price-to-earnings (P/E) ratio is projected to be -17.6 for 2023, 28.2 for 2024, and 19.5 for 2025, indicating a potential recovery in profitability [5][6].