Huafon Aluminium(601702) 民生证券·2025-04-22 12:23Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on a PE of 11/10/8X for the years 2025-2027 respectively [6][4]. Core Insights - The company achieved a revenue of 10.878 billion yuan in 2024, representing a year-on-year growth of 17.08%, and a net profit of 1.218 billion yuan, up 35.44% year-on-year [1][5]. - The production of aluminum thermal transmission materials reached approximately 438,600 tons in 2024, a 13.17% increase from the previous year, while the average price of aluminum ingots was about 19,921 yuan per ton, up 6.53% [2][3]. - The company has a strong customer base in the heat exchange sector, including global leaders such as Denso Corporation and Mahle Group, as well as key players in the new energy sector [3]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 3.2 billion yuan, a 23.22% increase year-on-year, and a net profit of 350 million yuan, up 48.48% year-on-year [1]. - For Q1 2025, the revenue was 2.905 billion yuan, a 22.97% increase year-on-year, while the net profit was 266 million yuan, a 5% increase year-on-year [1]. Production and Cost Efficiency - The manufacturing cost per ton of aluminum thermal transmission materials was approximately 3,020 yuan in 2024, down 12.18% year-on-year [2]. - The company’s net profit per ton after tax increased from 2,350 yuan in 2023 to 2,808 yuan in 2024, reflecting a 19.53% growth [2]. Project Expansion - The company is expanding its Chongqing Phase II project from an annual production capacity of 150,000 tons to 450,000 tons, which is expected to significantly reduce costs and enhance profitability [4]. Profit Forecast - The projected net profits for the company from 2025 to 2027 are 1.443 billion yuan, 1.644 billion yuan, and 2.073 billion yuan respectively, with corresponding PE ratios of 11, 10, and 8 [5][4].