Hanvo Safety(300952) 国泰君安·2024-04-24 02:02Investment Rating - The investment rating for Henghui Safety (300952) is "Buy" with a target price of 25.07 CNY, maintaining the previous rating of "Buy" [2][4]. Core Views - The report highlights that the company is expected to see significant growth in 2024 due to the gradual ramp-up of new production capacity and a recovery in demand, leading to a projected increase in annual performance [2][4]. - The report adjusts the EPS forecast to 1.29 CNY for 2024 and 1.78 CNY for 2025, down from previous estimates of 1.55 CNY and 1.95 CNY respectively, while maintaining a target price based on a 20x PE ratio [2][4]. Summary by Sections Financial Performance - In 2023, the company's revenue increased by 9.4% year-on-year, while net profit attributable to the parent company decreased by 13.1% due to product mix and exchange rate fluctuations [2][4]. - The fourth quarter of 2023 saw revenue and net profit of 2.8 million CNY, reflecting a year-on-year increase of 35.5% and a decrease of 37.9% respectively [2][4]. Future Outlook - The company is expected to benefit from the release of new production capacity in 2024, with a projected revenue of 1.531 billion CNY and a net profit of 188 million CNY, representing a significant increase from 2023 [4][2]. - The report anticipates a strong recovery in profitability in 2024, with a projected EPS of 1.29 CNY, up from 0.73 CNY in 2023 [4][2]. Market Position - Henghui Safety is positioned in the personal safety protection market, focusing on the development and production of safety gloves with various protective features [4][2]. - The company has established a competitive edge in the core individual safety field, with expectations for high growth in 2024 [2][4].