Investment Rating - The report maintains a "Buy" rating for Hainan Huatie, with a target price of 13.05 CNY based on a 29 times price-to-earnings ratio for 2025 [3][5][8]. Core Views - The company is expected to face challenges in its equipment leasing business in 2024 due to macroeconomic factors, leading to a downward revision of revenue and profit forecasts [3][8]. - The projected earnings per share for 2025-2027 are 0.45 CNY, 0.71 CNY, and 0.96 CNY, respectively, down from previous estimates of 0.75 CNY and 0.98 CNY for 2025 and 2026 [3][8]. - Hainan Huatie is positioned to benefit from the growing trend of Real World Asset (RWA) tokenization, leveraging its substantial asset base in equipment leasing and its new foray into computing power leasing [7][8]. Financial Summary - Revenue is projected to grow from 4,444 million CNY in 2023 to 10,984 million CNY in 2027, with a compound annual growth rate (CAGR) of 26.2% [4][10]. - Operating profit is expected to increase from 981 million CNY in 2023 to 2,363 million CNY in 2027, reflecting a significant growth trajectory [4][10]. - The net profit attributable to the parent company is forecasted to rise from 801 million CNY in 2023 to 1,908 million CNY in 2027, with a notable increase in the net profit margin from 18.0% to 17.4% over the same period [4][10]. - The company's gross margin is projected to decline from 46.5% in 2023 to 40.9% in 2027, indicating potential cost pressures [4][10]. Market Position and Strategy - Hainan Huatie is a leading equipment leasing company in China, managing over 470,000 tons of construction support equipment and more than 180,000 aerial work platforms [7]. - The company has begun to explore computing power leasing as a second growth curve, with signed contracts exceeding 7 billion CNY [7]. - Strategic partnerships, such as the collaboration with the RWA Research Institute, aim to enhance the company's capabilities in asset tokenization and establish industry standards [7].

Core Viewpoint - Hainan Huatie has achieved significant results since its collaboration with Ant Chain in 2022, completing nearly 26 billion yuan in asset digitalization on the blockchain, meeting the prerequisites for RWA financing [1][3] Group 1: Business Developments - The company has signed a strategic cooperation agreement with RWA Research Institute to collaborate on asset blockchain valuation, industry standards, and global circulation practices [3] - Hainan Huatie has expanded its business into computing power services, with a total signed service amount reaching 6.67 billion yuan and asset delivery exceeding 900 million yuan by the end of March 2025 [1][9] - The company has established six subsidiaries in Hainan in 2024, with total assets amounting to 10 billion yuan, accounting for over 40% of the company's total assets [7] Group 2: Financial Performance - Hainan Huatie's revenue has shown consistent growth, with revenues of 3.278 billion yuan and 4.444 billion yuan in 2022 and 2023, representing year-on-year increases of 25.75% and 35.55% respectively [6] - In 2024, the company achieved a record revenue of 5.171 billion yuan, a year-on-year increase of 16.38%, while net profit decreased by 24.49% to 605 million yuan due to weak macro demand and expanded operational scale [9] - As of the first quarter of 2025, the company reported revenue of 1.288 billion yuan, a year-on-year increase of 16.58%, and net profit of 191 million yuan, up 21.72% [9] Group 3: Debt and Financing - The company's debt ratio rose to 72.32% by the end of the first quarter of 2025 [2][13] - Hainan Huatie plans to issue bonds up to 2 billion yuan to repay debts and supplement working capital [2][13] Group 4: Strategic Initiatives - The company is planning an overseas listing to enhance its international strategy and accelerate the establishment of overseas computing centers [11]

Core Viewpoint - Hainan Huatie is planning to issue shares overseas (S shares) and list on the Singapore Stock Exchange to enhance its international strategy and expand its business in Southeast Asia [1][2][3] Company Overview - Hainan Huatie was established in 2008 and listed on the Shanghai Stock Exchange in 2015, primarily engaged in the rental and service of engineering and intelligent computing equipment [2] Financial Performance - In 2024, Hainan Huatie's domestic revenue reached 5.08 billion yuan, a year-on-year increase of 15.17%, while its overseas revenue was 1.31 million yuan with a gross margin of -35.63% [4][5] - The company reported a net profit of 1.91 billion yuan in Q1 2025, a year-on-year growth of 21.72% [1][10] - For the full year of 2024, the company achieved a revenue of 5.17 billion yuan, marking a historical high, but net profit decreased by 24.49% to 605 million yuan [7][10] Debt Situation - As of Q1 2025, Hainan Huatie's debt ratio reached 72.32%, an increase of 23.76 percentage points over four years [12] - The debt ratio has shown a consistent upward trend, rising from 48.56% in Q1 2021 to 72.95% by the end of 2024 [11][12] Strategic Initiatives - The company is focusing on expanding its international presence, particularly in Southeast Asia, and has established a store in Hwaseong, South Korea, as part of its overseas strategy [3][5] - Hainan Huatie has signed a total service amount of 6.67 billion yuan in computing services by the end of Q1 2025, indicating a strong commitment to enhancing its capabilities in the intelligent computing sector [10]