Richful(SZ:300910) Shanxi Securities·2024-04-27 03:30Investment Rating - The report maintains a "Buy-B" rating for the company, with projected net profits for 2024-2026 being 7.24 billion, 8.79 billion, and 9.67 billion respectively, corresponding to PE ratios of 18.4, 15.2, and 13.8 [6][7]. Core Insights - The demand for automotive and industrial oils is on the rise, with the total demand for lubricants in Q1 2024 reaching 2.08 million tons, a year-on-year increase of 9.6%. The prices of lubricants have remained stable, with fluctuations in raw material base oil prices being minimal [2][20]. - The company reported Q1 2024 revenue of 714 million, a year-on-year increase of 14.41%, and a net profit of 153 million, up 57.77% year-on-year [20][21]. - The gross margin improved by 4.36 percentage points year-on-year to 35.5%, while the expense ratio decreased by 4.09 percentage points [21]. Financial Performance Summary - The company’s net profit for the past years is as follows: 588 million in 2022, 606 million in 2023, and projected 727 million in 2024, with a year-on-year growth of 10% [5][9]. - The gross margin for the years is reported as 30.1% in 2022, 35.0% in 2023, and projected to be 34.3% in 2024 [5][21]. - The return on equity (ROE) has shown a decline from 21.4% in 2022 to a projected 18.7% in 2024 [5][9].