HUAKANG(605077) 国信证券·2025-02-28 16:08Investment Rating - The investment rating for Huakang Co., Ltd. is "Outperform the Market" [6][28]. Core Views - The company's performance in 2024 saw a year-on-year decline of 27.72% in net profit, attributed mainly to increased management and sales expenses. However, revenue slightly increased by 0.93% to 2.808 billion yuan [1][11]. - The new production capacity in Zhoushan is expected to drive the company's performance upward, with the first phase of the 1 million-ton corn deep processing project already in operation [2]. - The planned acquisition of Yuxin Sugar Alcohol aims to consolidate Huakang's leading position in the xylitol market, increasing its domestic production capacity share to 49.6% [3][21]. Summary by Sections Financial Performance - In 2024, Huakang achieved a revenue of 2.808 billion yuan, with a net profit of 268 million yuan, reflecting a decline of 27.72% year-on-year. The net profit excluding non-recurring items was 259 million yuan, down 27.46% [1][11]. - The company's net assets increased by 4.98% to 3.243 billion yuan, while total assets grew by 13.18% to 6.992 billion yuan [1][11]. Future Projections - The revenue forecasts for 2025, 2026, and 2027 are 3.672 billion yuan, 4.356 billion yuan, and 5.009 billion yuan, respectively, indicating growth rates of 30.7%, 18.6%, and 15.0% [4][28]. - The projected net profits for the same years are 400 million yuan, 504 million yuan, and 592 million yuan, with corresponding EPS of 1.31 yuan, 1.65 yuan, and 1.94 yuan [4][28]. Market Position and Strategy - Huakang is positioned as a leading enterprise in the functional sugar alcohol industry, leveraging new production capacities and acquisitions to enhance its product structure and industry chain development [4][28]. - The acquisition of Yuxin Sugar Alcohol is expected to enhance synergies in procurement, production, sales, and R&D, thereby improving overall market competitiveness [3][27].