HUAKANG(605077) 东北证券·2025-03-04 09:44Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [5]. Core Views - The company has shown steady growth in sales despite short-term profit pressure, with a revenue increase of 0.93% year-on-year to 2.808 billion yuan in 2024, while net profit decreased by 27.72% to 268 million yuan [2][3]. - The company is actively expanding its production capacity with the ongoing construction of a 1 million-ton corn deep processing project, which is expected to enhance its long-term growth potential [4]. - A planned acquisition of Henan Yuxin Sorbitol Co., a leading player in the functional sugar alcohol industry, is anticipated to reshape the market landscape and improve the company's competitive position [4]. Financial Summary - In 2024, the company achieved a revenue of 2.808 billion yuan, with a slight increase of 0.93% compared to the previous year. The net profit attributable to the parent company was 268 million yuan, reflecting a significant decline of 27.72% [2][6]. - The company forecasts net profits of 380 million yuan, 473 million yuan, and 573 million yuan for 2025, 2026, and 2027, respectively, indicating a recovery trend with corresponding EPS of 1.24, 1.55, and 1.87 yuan [5][6]. - The projected PE ratios for 2025, 2026, and 2027 are 12.09, 9.71, and 8.01 times, respectively, suggesting an attractive valuation as the company’s growth potential is gradually realized [5][6].