Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Insights - The company's performance met expectations, with sales expansion and profit recovery in the basic chemical catalyst sector, highlighting its scale advantages [1] - The company reported a total revenue of 1.687 billion yuan in 2024, a year-on-year decrease of 5.5%, and a net profit attributable to shareholders of 93 million yuan, down 18% year-on-year [6] - In Q1 2025, the company achieved a revenue of 626 million yuan, a year-on-year increase of 105.3%, and a net profit of 22 million yuan, up 90.5% year-on-year [6] Financial Data and Profit Forecast - The company forecasts total revenue of 1.971 billion yuan for 2025, with a year-on-year growth rate of 16.8% [5] - The projected net profit for 2025 is 150 million yuan, reflecting a year-on-year increase of 62.2% [5] - The earnings per share (EPS) is expected to be 1.15 yuan for 2025, with a projected price-to-earnings (PE) ratio of 28 [5] - The gross profit margin is anticipated to improve to 13.6% in 2025, up from 11.2% in 2024 [5] Company Performance and Market Dynamics - The company experienced a significant increase in catalyst sales volume in Q1 2025, with an overall sales increase of 188.87% year-on-year [6] - The pharmaceutical and basic chemical sectors saw sales growth of 174.88% and 285.60% respectively, indicating a strong recovery in demand [6] - The company is leveraging its R&D capabilities to enhance product offerings and expand into new markets, with a notable increase in revenue contribution from the basic chemical sector [6] Future Outlook - The company aims to maintain its profit forecasts for 2025-2026, with net profits projected at 150 million yuan and 215 million yuan respectively [6] - The introduction of new projects and products is expected to support future growth, with a focus on expanding its core competencies in various sectors [6]

Investment Rating - The report maintains a "Buy" rating for the company [1][6] Core Views - The company has shown steady growth in modified plastics, with a significant increase in revenue and profit in 2024, driven by strategic partnerships and new capacity from its southwestern headquarters [4][5] - The thermoplastic elastomer segment is building a competitive moat, benefiting from accelerated domestic substitution and expansion into new applications, particularly in the electric vehicle sector [4][5] - New product development across various technology platforms is expected to open long-term growth opportunities, with successful testing and commercialization of new materials like DVA and HNBR [5][6] Financial Performance Summary - In 2024, the company achieved revenue of 5.301 billion yuan, a year-on-year increase of 16.65%, and a net profit of 141 million yuan, up 0.67% [4][8] - The fourth quarter of 2024 saw a revenue of 1.532 billion yuan, representing a 29.17% year-on-year growth [4] - The first quarter of 2025 reported a net profit of 44.284 million yuan, a 25.44% increase compared to the previous year [4] Product Segment Performance - Revenue from modified plastics in 2024 reached 3.806 billion yuan, growing by 19.18%, with sales volume increasing by 20.60% [4] - The thermoplastic elastomer segment generated 768 million yuan in revenue, up 21.34%, with sales volume rising by 27.00% [4] Future Earnings Forecast - Expected EPS for 2025-2027 is projected at 0.43, 0.57, and 0.73 yuan respectively, indicating a positive growth trajectory [6][8] - Revenue growth rates are forecasted at 11.69% for 2025, 13.12% for 2026, and 12.67% for 2027 [8]