KINGFA(600143) 钛媒体APP·2025-04-23 06:31Core Viewpoint - Kingfa Technology (600143.SH) reported record-high revenue of 60.514 billion yuan for 2024, a year-on-year increase of 26.23%, and a net profit of 0.825 billion yuan, up 160.36% year-on-year. However, the market remains skeptical about the sustainability of this growth due to a low performance base in 2023 and ongoing pressures in its profit structure [2][3][4]. Revenue and Profit Analysis - The company's revenue growth is largely attributed to a low base in 2023, which was the lowest in nearly a decade, with absolute values lower than any year from 2019 to 2022 [6][11]. - Kingfa's main business, modified plastics, accounted for 52% of revenue, but faced significant pressure with a sales price drop to a six-year low, resulting in a gross margin decrease of 1.44 percentage points [3][6][8]. - The medical health segment, which thrived during the pandemic, has seen a drastic decline in revenue from 2.71 billion yuan to 0.56 billion yuan in 2024, with a negative gross margin of -34.22% [11][12]. Business Segment Performance - Kingfa's four main business segments are under pressure, with modified plastics experiencing volume growth but price declines, leading to a significant drop in profitability [6][11]. - The green petrochemical segment continues to report deep losses, with subsidiaries like Liaoning Kingfa and Ningbo Kingfa showing substantial revenue increases but also significant losses [10][12]. - The company has over 3,000 competitors in the modified plastics market, with a fragmented market structure and intense price competition, particularly in the mid-to-low-end segments [8]. Financial Health and Debt Situation - Kingfa's aggressive expansion strategy has resulted in 28.3 billion yuan in interest-bearing debt, leading to operational losses, impairment issues, and increased expenses [12][17]. - The company's financial expenses have risen significantly, with interest expenses reaching 1.098 billion yuan in 2024, compared to 0.576 billion yuan in 2020 [17][18]. - Kingfa is currently facing a liquidity crunch, with cash reserves insufficient to cover short-term debts, leading to plans to issue up to 4 billion yuan in medium-term notes to support operations and repay debts [18].