HNZK Electric.(300035) 西部证券·2025-03-31 09:41Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.24 CNY based on a target P/E ratio of 23X for 2025 [5][18]. Core Insights - The report highlights that the decline in upstream raw material prices may eliminate the negative impact on the company's anode profitability, with an expected improvement in the industry supply-demand dynamics by 2025. The company's anode products are widely used in downstream sectors such as new energy vehicles, energy storage, and 3C electronics, supported by a well-established integrated layout and significant cost advantages. The growth of high-end products like fast-charging and silicon anodes is anticipated to continue providing excess returns [1][2][3]. Summary by Sections Company Overview - The company, originally established in 2004, entered the anode materials sector in 2016 through the acquisition of a graphite company, forming a synergistic business model of "magnetic equipment + anode materials." As of the first half of 2024, over 90% of the company's revenue comes from its anode business [2][13]. Financial Performance - The company forecasts a substantial increase in net profit for 2024, estimating a range of 288-325 million CNY, representing a year-on-year growth of 590% to 680%. The expected net profit for 2024 is projected at 307 million CNY, with a significant improvement in operational efficiency and cost reduction measures contributing to this growth [2][33]. Market Dynamics - The report indicates that the supply expansion in the anode market is slowing down, which may lead to a rebound in prices. The demand for fast-charging products is increasing, and the company is well-positioned to benefit from this trend due to its partnerships with leading battery manufacturers [3][47]. Profitability and Cost Structure - The company's integrated cost structure is highlighted, with the estimated graphite cost at approximately 6,000 CNY per ton. The report emphasizes the importance of cost control and operational efficiency in enhancing profitability, particularly as the company increases its production capacity and product offerings [3][4][18]. Future Outlook - The company is expected to see its net profit grow to 603 million CNY in 2025 and 863 million CNY in 2026, with corresponding EPS of 0.88 CNY and 1.26 CNY. The anticipated growth rates for net profit are 96.3% and 43.1% for 2025 and 2026, respectively [1][4][18].