Huate Gas(688268) 光大证券·2025-04-10 14:44Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 52.85 CNY [6]. Core Views - The company achieved a revenue of 1.395 billion CNY in 2024, a decrease of 7.02% year-on-year, while the net profit attributable to shareholders increased by 7.99% to 185 million CNY [1]. - The decline in revenue is attributed to a significant drop in sales of hydride gases, particularly silane, which fell by 48.4% due to weakened downstream demand. However, the company saw growth in fluorocarbon gases and photolithography gases, with respective increases of 14.9% and 9.2% [2]. - The overall gross margin improved by 1.3 percentage points to 31.9% due to lower raw material prices, despite an increase in the expense ratio to 17.1% [2]. - The company is focusing on enhancing its domestic and international presence, having achieved import substitution for 55 products, with over 20 products supplied to advanced semiconductor production lines [3]. - Future profit forecasts for 2025-2027 have been adjusted upwards, with expected net profits of 229 million CNY, 316 million CNY, and 392 million CNY respectively [3]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 1.395 billion CNY, down from 1.5 billion CNY in 2023, with a net profit of 185 million CNY [1][5]. - The gross margin increased to 31.9%, while the expense ratio rose to 17.1% due to decreased revenue [2][12]. Business Segments - Specialty gases revenue was 931 million CNY, down 8.9% year-on-year, with hydride gases experiencing a 48.4% decline [2]. - Industrial gas revenue grew by 7.2% to 243 million CNY, while equipment and engineering revenue fell by 13.6% to 174 million CNY [2]. Strategic Initiatives - The company is enhancing its supply chain and expanding production bases in regions such as South China, Nantong, Southwest, and Jiangxi [3]. - Internationally, the company is leveraging subsidiaries in Singapore, Thailand, and Malaysia to strengthen its Southeast Asian operations [3]. Profit Forecasts and Valuation - The company’s net profit forecasts for 2025-2027 are 229 million CNY, 316 million CNY, and 392 million CNY, reflecting an upward revision due to strong semiconductor demand [3][5]. - The report indicates a projected P/E ratio decreasing from 34 in 2024 to 16 by 2027, suggesting improved valuation metrics over time [12][13].