Company Overview - "RuiMo Environmental Protection" is a technology-driven high-tech enterprise in the recycled plastics industry, established in 2015, focusing on the high-value recycling of polypropylene (PP) and polyethylene (PE) through a "recycle-reuse-application" model [1][3] - The company utilizes physical recycling methods to achieve "same-level recycling," ensuring that recycled pellets perform close to virgin material levels, certified by the FDA and EU RoHS [1][3] Recent Developments - RuiMo Environmental Protection recently completed a new financing round led by Ingka Investments, with continued support from existing shareholder Asahi Kasei, and with Momentum Capital acting as the exclusive financial advisor [1] - The funds will primarily be used for technology research and development, capacity expansion, and market development [1] Market Context - Approximately 70% of plastic waste is either landfilled or incinerated, with increasing pressure on global plastic pollution management [2] - Various countries have set clear targets for the use of recycled materials in plastic packaging, with a goal of 30% by 2030 [2] - The global market for recycled plastic products is projected to reach $174.42 billion by 2030, with China accounting for about 60% of the global recycled plastics industry [2] Technological Innovations - RuiMo Environmental Protection has developed automatic sorting equipment for polyolefin food packaging waste, enhancing sorting efficiency through visual recognition and digital systems [3] - The company addresses quality and safety issues in recycled materials through deep cleaning, high-precision sorting, and melt filtration processes, enabling the production of recycled plastics suitable for high-demand applications [3] Industry Challenges - The recycled plastics industry is characterized by small, scattered, and polluting production practices, leading to low-quality recycled materials that often do not meet international brand standards [2] - The domestic production rate of food-grade recycled PP is low, with significant technical barriers and supply chain bottlenecks [2] Team Expertise - The founder and CEO, Zhu Kuan, has 8 years of experience in petrochemical marketing management and 10 years in the plastic recycling industry [4] - The CTO, Xiong Wei, holds a PhD in Polymer Science from the Chinese Academy of Sciences and has a background in multinational chemical enterprises [4] Investor Insights - Lukas Visser, head of circular investments at Ingka Group, highlighted RuiMo's strong supplier network and partnerships with leading local delivery platforms, aiming to expand its impact on the local recycling market [5] - Pontus Erntell, President and Chief Sustainability Officer of IKEA China, emphasized the commitment to long-term investment in the Chinese market and the opportunity to lead the transition to a circular economy [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a revenue of 2.924 billion yuan in 2024, representing a year-on-year growth of 19.09%, and a net profit attributable to shareholders of 307.32 million yuan, which is a 57.07% increase [7] - The revenue from high-value utilization products, including finished frames and decorative building materials, increased to 76% of total revenue in 2024 [7] - The company is focusing on expanding its product categories and enhancing its marketing channels, which has led to steady revenue growth [7] Financial Performance Summary - **Revenue Forecasts**: - 2023A: 2.455 billion yuan - 2024A: 2.924 billion yuan (19.09% YoY) - 2025E: 3.393 billion yuan (16.03% YoY) - 2026E: 4.166 billion yuan (22.80% YoY) - 2027E: 4.948 billion yuan (18.76% YoY) [1][8] - **Net Profit Forecasts**: - 2023A: 195.65 million yuan - 2024A: 307.32 million yuan (57.07% YoY) - 2025E: 386.09 million yuan (25.63% YoY) - 2026E: 458.22 million yuan (18.68% YoY) - 2027E: 540.77 million yuan (18.02% YoY) [1][8] - **Earnings Per Share (EPS)**: - 2023A: 1.05 yuan - 2024A: 1.64 yuan - 2025E: 2.06 yuan - 2026E: 2.45 yuan - 2027E: 2.89 yuan [1][8] - **Price-to-Earnings (P/E) Ratios**: - 2024A: 14.36 - 2025E: 11.43 - 2026E: 9.63 - 2027E: 8.16 [1][8] Product and Market Insights - The company has strengthened its competitive edge in high-value utilization products, with finished frames generating 1.312 billion yuan in revenue, a 24.37% increase [7] - The decorative building materials segment saw a revenue increase of 31.55%, contributing 9.16 billion yuan [7] - The company is expanding its rPET production capacity, with 50,000 tons/year already operational and an additional 100,000 tons/year under construction [7]

Core Insights - The company, Yingke Recycling Resources Co., Ltd., reported record high revenues and net profits for 2024, with operating income reaching 2.924 billion yuan, a year-on-year increase of 19.09%, and net profit attributable to shareholders at 307 million yuan, up 57.07% [1] - In Q1 2025, the company achieved operating income of 793 million yuan, a 25.19% increase year-on-year, while net profit attributable to shareholders was 72.32 million yuan, showing a slight increase of 0.02% [1] - The company attributes its growth to effective market capture, new product development, and extensive participation in 41 trade shows, enhancing brand visibility and marketing channels [1] Company Operations - Yingke Recycling specializes in high-tech manufacturing for resource recycling, recovering various types of waste plastics from 100 countries and producing high-quality r-PS, r-PE, and r-PET plastic particles [2] - The company has diversified its product offerings from picture frames to decorative building materials, providing a one-stop solution for downstream retail stores [2] - Since 2017, the company has established overseas manufacturing bases, including a factory in Selangor, Malaysia, and a second factory in Quang Ninh, Vietnam, which has reached full production capacity in 2024, contributing significantly to revenue growth [2] Market Positioning - The company is well-positioned to benefit from increasing environmental awareness and the promotion of sustainable practices in the plastic industry, which presents opportunities for the recycling sector [1] - In response to rising trade uncertainties, the company is enhancing its supply chain localization and operational flexibility through a forward-looking overseas base strategy, solidifying its market position [2]