Huangma Technology(SH:603181) Great Wall Securities·2024-04-26 03:02Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company is focusing on upgrading its product structure, which is expected to enhance profitability. The exit from low-margin products and the emphasis on high-margin specialty chemicals and functional materials are seen as key growth drivers [2][8]. - The company has a significant production capacity of nearly 300,000 tons per year, providing a competitive advantage [2]. Financial Summary - The company's revenue for 2023 is projected to be 1.894 billion, a decrease of 13.2% year-on-year, with a net profit of 325 million, down 31.9% [4][30]. - Revenue forecasts for 2024, 2025, and 2026 are 2.244 billion, 2.762 billion, and 3.126 billion respectively, with expected growth rates of 18.5%, 23.1%, and 13.2% [8]. - The net profit for the same years is projected to be 397 million, 484 million, and 542 million, with growth rates of 22.2%, 21.9%, and 12.1% [8]. Cash Flow and Financial Ratios - The net cash flow from operating activities for 2023 is 321 million, a decline of 33.32% year-on-year [5]. - The company's cash and cash equivalents at the end of the period are 682 million, an increase of 7.77% year-on-year [5]. - The report indicates a decrease in accounts receivable turnover from 9.73 times to 8.06 times, while inventory turnover decreased from 6.79 times to 6.29 times [5]. Project Developments - The company is actively advancing project construction, with the opening of the new high-end functional materials project expected to contribute positively to future performance [26].