Shengquan Group(605589) 开源证券·2025-01-14 07:23Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [3][149]. Core Insights - The company is recognized as a champion in synthetic resin manufacturing, with promising growth in electronic specialty resins and biomass [3][4]. - The company aims to leverage its integrated supply chain in synthetic resins and biomass chemical industries to become a leading global provider of biomass and chemical new material solutions [3][149]. - The projected net profits for 2024, 2025, and 2026 are estimated at 8.91 billion, 11.89 billion, and 13.86 billion yuan respectively, with corresponding EPS of 1.05, 1.40, and 1.64 yuan per share [3][143]. Summary by Sections Company Overview - The company, Jinan Shengquan Group Co., Ltd., has a history dating back to 1979 and has developed a comprehensive industrial chain that includes biomass chemical raw materials and synthetic resins [3][15]. - It has been recognized as a national manufacturing single champion in various resin categories, including foundry auxiliary materials and phenolic resins [3][4]. Synthetic Resins - The company has a production capacity of 120,000 tons/year for furan resin and 20,000 tons/year for cold box resin, leading the global market in foundry resin production [4][22]. - The phenolic resin production capacity stands at 648,600 tons/year, with a wide range of applications and a strong market position [4][61]. - The demand for high-frequency and high-speed resins is expected to grow due to advancements in AI and electronic applications, with the company actively developing products in this area [4][79]. Biomass Industry - The company has developed the "Shengquan Method" for biomass refining, which efficiently separates cellulose, hemicellulose, and lignin from straw, enabling high-value utilization [5][117]. - The Daqing biomass project, with a capacity of 1 million tons/year, is expected to produce a variety of green biomass products, including biochar and hard carbon materials for sodium-ion batteries [5][129]. Financial Performance and Projections - The company reported revenues of 9.12 billion yuan in 2023, with a projected increase to 11.52 billion yuan in 2025 and 12.98 billion yuan in 2026 [7][143]. - The gross profit margin is expected to improve from 23.0% in 2023 to 24.9% by 2026, reflecting operational efficiency and market demand [7][143]. - The company’s net profit margin is projected to rise from 8.7% in 2023 to 10.7% in 2026, indicating strong profitability growth [7][143]. Market Position and Competitive Advantage - The company is positioned as a key supplier in the electronic specialty resin market, with a diverse product range that meets the evolving needs of the electronics industry [4][79]. - The integrated approach to biomass and chemical materials is expected to enhance the company's competitive edge in the market [3][149].