Group 1 - The core viewpoint of the report is a recommendation rating for Yongjin Co., Ltd. (603995.SH) with a latest price of 18.14 yuan [2] - Key reasons for the recommendation include a sequential increase in stainless steel volume and profit [2] - Future core highlights include the orderly release of stainless steel production capacity and diversified development in new materials business [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4][18] Core Viewpoints - The company has successfully established a new materials business unit, which is expected to create new profit growth points. The new materials include high-end polyurethane vibration damping products, silicone PACK functional materials, and HP-RTM PACK structural materials [3][5] - The company anticipates steady growth in its new materials business, with products such as polyurethane, silicone, and HP-RTM already achieving bulk supply, potentially enhancing profit margins [4] - The wind turbine blade orders are robust, with promising overseas market prospects. The wind power blade business is expected to see both volume and profit growth by 2025, with a factory in Vietnam projected to start production in early 2026 [4] - The rail transportation and industrial engineering businesses are expected to maintain stable revenue, with further growth anticipated post-2026 when production capacity is restored [4] - The automotive business is gradually shifting production capacity to lower-cost regions in Asia, with ongoing efforts to expand the customer base [4] Financial Projections - The company forecasts a net profit of 6.5 billion yuan for 2025, with slight upward adjustments for 2026 and 2027 to 8.4 billion yuan and 9.8 billion yuan, respectively, reflecting year-on-year growth rates of +46.7%, +28.8%, and +16.2% [4][18] - The projected revenue for 2025 is 22.75 billion yuan, with a year-on-year growth of +13.4%, and for 2026, it is expected to reach 25.43 billion yuan, with a growth of +11.8% [17][21] - The company's current price-to-earnings (PE) ratios are projected to be 16.7, 13.0, and 11.2 for 2025, 2026, and 2027, respectively [4][18]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a revenue of 1.265 billion, a slight increase of 0.1% year-on-year, and a net profit attributable to shareholders of 24 million, which represents a significant growth of 73.0% year-on-year [2][4]. - The company is expected to see improvements in its new materials business and the ramp-up of its UTG cover glass production, with projected net profits of 190 million and 260 million for 2025 and 2026, respectively, corresponding to PE ratios of 53 and 39 [10]. Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 1.265 billion, with a year-on-year growth of 0.1%. The net profit attributable to shareholders was 24 million, marking a 73.0% increase year-on-year. The non-recurring net profit was 12 million, recovering from a loss of 31 million in the same period last year [2][4][10]. - The gross margin for the period was 17.7%, an increase of 3.4 percentage points year-on-year, indicating a notable improvement in profitability [10]. Business Developments - The company is focusing on innovation and R&D, supported by national-level innovation platforms. It has made significant advancements in various new technologies, including UTG iteration technology and high-purity synthetic silica [10]. - The zirconium products continue to play a crucial role, with a 24.4% increase in sales volume year-on-year. The introduction of nano-zirconia into the mainstream customer base for new energy cathode materials saw a remarkable growth of 232.89% in sales volume [10]. Market Outlook - The company anticipates a gradual increase in its new materials product categories, despite ongoing pressure in consumer electronics demand. The traditional display materials business is expected to improve, contributing positively to profits [10]. - The company has established itself as a core supplier for major clients in the flexible display market, particularly with its UTG technology, which is being utilized in high-end automotive applications [10].

Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a potential increase in stock price relative to the market index [1][4][7] Core Views - The company achieved an operating revenue of 182.069 billion yuan in 2024, representing a year-on-year growth of 3.38%, while the net profit attributable to the parent company was 13.033 billion yuan, down 22.49% year-on-year [4][6] - The company is actively addressing global economic uncertainties by enhancing its global channel layout and improving operational efficiency through digitalization [4][6] - The company has a robust project pipeline, including new materials and fine chemicals, which supports long-term growth prospects [4][6] Summary by Sections Financial Performance - In 2024, the company reported a polyurethane sales volume of 5.64 million tons, up 15.34% year-on-year, and a petrochemical product sales volume of 5.47 million tons, up 15.89% year-on-year [4][6] - The average price for pure MDI and polymer MDI in 2024 was 19,037 yuan/ton and 17,297 yuan/ton, reflecting a year-on-year decrease of 5.28% and an increase of 8.18%, respectively [4][6] - The overall gross profit margin for the year was 16.16%, down 0.61 percentage points year-on-year, primarily due to increased R&D expenses and significant impairment losses [4][6] Future Outlook - The company expects earnings per share (EPS) of 4.53 yuan and 5.73 yuan for 2025 and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 12.42 and 9.82 based on the closing price of 56.26 yuan on April 15 [4][6] - The company is focusing on expanding its fine chemicals and new materials business, with several projects set to launch, including a 20,000-ton POE and a 48,000-ton citral facility [4][6] - The report highlights the company's transition from a polyurethane leader to a major player in new materials, leveraging its petrochemical business for competitive advantages [4][6]