sunresin(SZ:300487) Huafu Securities·2024-03-04 16:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 61.64 CNY based on a 31x PE for 2024 [4][9]. Core Views - The company is a leading provider of adsorption separation materials in China, with nearly two decades of industry experience, and offers comprehensive solutions across various sectors including metal resources, life sciences, water treatment, food processing, and environmental protection [1][15]. - The company has a strong competitive edge due to its proprietary technologies in lithium extraction from salt lakes, with contracts exceeding 2.5 billion CNY and a production capacity of 73,000 tons/year for lithium carbonate [2][41]. - The demand for solid-phase synthesis carriers is expected to surge due to the rapid growth of the biopharmaceutical market, particularly in GLP-1 drugs and small nucleic acid drugs [2][7]. - The company's ultra-pure water resin products are increasingly competitive against international giants, with successful certifications for high-end drinking water products [2][7]. Summary by Sections 1. Company Overview - The company specializes in the research, production, and sales of adsorption separation materials, becoming a domestic industry leader with over 30 product series and 200 varieties [15][29]. - The company has seen significant revenue growth, with a compound annual growth rate (CAGR) of 34.01% from 2017 to 2022 [17][19]. 2. Market Potential - The growth in sectors such as new energy vehicles and semiconductors is driving demand for lithium, cobalt, nickel, and other metals, creating a vast market for wet metallurgy adsorption materials [2][41]. - The biopharmaceutical sector is expected to drive demand for solid-phase synthesis carriers, with the company positioned as a key supplier in the peptide field [2][7]. 3. Financial Projections - The company is projected to achieve revenues of 2.31 billion CNY, 3.00 billion CNY, and 3.73 billion CNY for 2023, 2024, and 2025, respectively, with corresponding net profits of 751 million CNY, 1.00 billion CNY, and 1.26 billion CNY [3][9]. - The earnings per share (EPS) are expected to be 1.49 CNY, 1.99 CNY, and 2.49 CNY for the same years [3][9]. 4. Competitive Landscape - The company is positioned to replace foreign brands in the domestic market, leveraging its advanced technologies and strong market presence [8][39]. - The report highlights the increasing competitiveness of domestic firms in the adsorption separation materials sector, which is traditionally dominated by foreign companies [35][39].