Zhongfu Shenying Carbon Fiber (688295) 华泰证券·2025-03-26 12:09Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 26.19 RMB [8][9]. Core Views - The company reported a revenue of 1.557 billion RMB in 2024, a year-on-year decrease of 31.07%, and a net profit attributable to the parent company of -124.38 million RMB, a year-on-year decline of 139.12% [1]. - The comprehensive gross margin for 2024 was 14.25%, down 16.36 percentage points year-on-year, with a significant drop in product prices impacting profitability [2]. - The company has improved its cash flow management, achieving a net operating cash flow of 540.04 million RMB in 2024, a year-on-year increase of 121.7% [4]. - Emerging demand in sectors such as low-altitude economy and electronic 3C is expected to support recovery in the company's pricing power [4]. Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 439 million RMB, down 32.57% year-on-year but up 13.50% quarter-on-quarter, with a net profit of -116 million RMB [1]. - The company recorded a net profit margin of -7.99% for the entire year of 2024, a decrease of 22.06 percentage points year-on-year [3]. Cost and Pricing - The average selling price of products fell to 95,200 RMB per ton, a decrease of 23.4% year-on-year, while the cost of raw materials remained relatively stable [2]. - The company recognized inventory impairment losses of 75 million RMB in 2024, which negatively impacted net profit [3]. Future Outlook - The company expects to improve its profitability in 2025 as production stabilizes and new demand emerges, with adjusted EPS forecasts of 0.10, 0.29, and 0.42 RMB for 2025, 2026, and 2027 respectively [5]. - The target price of 26.19 RMB corresponds to a price-to-book ratio of 5 times for 2025, reflecting the company's strong market position [5].