Investment Rating - The report assigns a "Buy" rating for the company with a target price of 13.17 CNY per share, based on a current price of 7.96 CNY [6]. Core Viewpoints - The company is expanding its footprint in the chemical industry by acquiring a 60% stake in the fluorochemical company San Aifu, which is among the top 20 in the global fluorochemical industry [4]. - The company has a diversified business model with five core segments: energy chemicals, green tires, advanced materials, fine chemicals, and chemical services, which collectively form a dual-driven development model of "manufacturing + services" [16][22]. - The company is expected to see significant profit growth, with projected net profits of 1.4 billion CNY in 2025, 1.9 billion CNY in 2026, and 2.3 billion CNY in 2027 [4]. Company Overview - The company, Shanghai Huayi Group Co., Ltd., is a large state-controlled listed company primarily engaged in energy chemicals, green tires, advanced materials, fine chemicals, and chemical services [16][22]. - The company was established in 1957 and has undergone several transformations, including its listing in 2016 [17][18]. - The major shareholder is Shanghai Huayi (Group) Company, holding a 37.65% stake [20]. Financial Performance - The company reported a revenue of 45.1 billion CNY in 2024, with a year-on-year growth of 9.1%, marking a new high since 2018 [36]. - The projected revenues for 2025 and 2026 are 49.95 billion CNY and 52.79 billion CNY, respectively [5]. - The company maintains a stable debt-to-asset ratio, which has remained between 52% and 58% from 2018 to 2024 [52]. Business Segments - The five core business segments generated revenues of 13.23 billion CNY (advanced materials), 10.94 billion CNY (green tires), 6.91 billion CNY (energy chemicals), 6.43 billion CNY (fine chemicals), and 6.64 billion CNY (chemical services) in 2024 [39][40]. - The advanced materials and green tires segments are significant contributors to the company's profitability, with gross margins of 10.7% and 29.4%, respectively [41]. Acquisition Impact - The acquisition of San Aifu is expected to enhance the company's revenue and profit contributions significantly, with forecasts indicating a substantial increase in net profits post-acquisition [4][5].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][8]. Core Insights - The company, Huayi Group, operates under five core diversified business segments and plans to acquire a 60% stake in San Aifu, enhancing its growth potential in the fine fluorochemical sector [5][6][8]. - In 2024, Huayi Group achieved a revenue of 44.6 billion yuan, reflecting a year-on-year growth of 9.3%, and a net profit of 910 million yuan, up by 5.8% [5]. - The acquisition of San Aifu, a top 20 global fluorochemical company, is expected to strengthen Huayi's position in the fine fluorochemical market and expand its new materials product matrix [6][8]. Financial Performance - The company reported a total market capitalization of approximately 16.09 billion yuan and a circulating market capitalization of about 14.13 billion yuan as of June 18, 2025 [4]. - The projected revenues for 2025, 2026, and 2027 are estimated at 45.83 billion yuan, 47.16 billion yuan, and 48.41 billion yuan, respectively, with corresponding net profits of 938 million yuan, 1.14 billion yuan, and 1.23 billion yuan [8][10]. - The company has a cash dividend plan for 2024, proposing a distribution of 0.18 yuan per share, resulting in a cash dividend ratio of 41.96% [7]. Business Strategy - Huayi Group focuses on a dual-core business model of "manufacturing + services" and aims to integrate its upstream and downstream supply chains [5]. - The company is committed to enhancing its core business in chemicals while aligning with national strategies and regional development initiatives [7].

Core Viewpoint - The company, General Shares, is seizing unprecedented development opportunities in the tire industry by embracing smart manufacturing, green innovation, and globalization to enhance its core competitiveness and stimulate growth potential [1][3]. Group 1: New Manufacturing - General Shares is leading the Industry 4.0 transformation by integrating smart manufacturing into tire production, establishing a new high ground in intelligent manufacturing [4]. - The company has achieved "dark factory" operations in its domestic semi-steel plant, reducing labor costs by 50%, increasing production efficiency by 40%, and lowering operational costs by 20% [6]. - In collaboration with China Mobile, General Shares launched the industry's first "5G Carbon Cloud Intelligent Factory," achieving full-process automation and significantly improving production efficiency and product quality [6]. Group 2: New Momentum - In alignment with the "dual carbon" goals, General Shares is integrating green low-carbon concepts into its development strategy, focusing on the research and implementation of green low-carbon technologies [7]. - The innovative use of natural materials, such as Eucommia rubber in electric vehicle tires, enhances durability, safety, and comfort while supporting the green development trend in the automotive industry [9]. - The company is also introducing low rolling resistance, high wear-resistant, and low noise green tire products to meet growing market demands and drive continuous performance growth [9]. Group 3: New Business Formats - General Shares is actively pursuing a "going out" strategy to build a global production and sales network, creating a new pattern of "domestic and international dual circulation" [10]. - The company has established production bases in China, Thailand, and Cambodia, effectively reducing production costs and enhancing market competitiveness [11]. - Upcoming projects in Thailand and Cambodia are expected to generate an additional revenue of 5.2 billion yuan and a net profit of 780 million yuan annually, providing strong momentum for future growth [11]. Group 4: Future Outlook - General Shares is positioned at the forefront of a new technological revolution and industrial transformation, advancing smart manufacturing, product innovation, and global market expansion [12]. - The company aims to continue its commitment to technological innovation and quality excellence, accelerating green low-carbon upgrades and expanding its international market presence [12].