Orinko(688219) 德邦证券·2025-04-25 11:16Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is a leader in the modified materials industry, being the first new materials enterprise listed on the Sci-Tech Innovation Board and the largest polymer modification materials company in China [5][12]. - The company has shown impressive revenue growth, with a projected total revenue of 6.088 billion yuan in 2024, up 13.81% year-on-year, and a net profit of 194 million yuan, up 32.04% year-on-year [5][8]. - The company is strategically investing in lithium battery wet separator projects and developing materials for robotics, which are expected to drive future growth [5][12]. Summary by Sections 1. Company Overview - The company has established eight research and production bases globally, including locations in Shanghai, Hefei, and Thailand [5][12]. - It serves various strategic industries, including home appliances, automotive, and consumer electronics [12]. 2. Financial Analysis - The company's revenue has grown from 4.031 billion yuan in 2019 to 6.088 billion yuan in 2024, with a CAGR of 8.59% [17][22]. - The net profit has increased from 109 million yuan in 2019 to 194 million yuan in 2024, with a CAGR of 12.26% [17][22]. - The company has improved its gross margin from 9.44% in 2021 to 13.50% in 2025Q1, indicating a recovery in profitability [22][26]. 3. Market Demand - The demand for modified plastics is expected to grow, particularly in the home appliance and automotive sectors, which account for 37% and 15% of the market, respectively [38][41]. - The home appliance market is projected to produce 695 million units in 2024, a 7.4% increase year-on-year, driving demand for modified plastics [38][40]. - The automotive sector is benefiting from policies promoting vehicle trade-ins, with a 11.2% year-on-year increase in car sales in early 2025 [46][49]. 4. Cost Structure - The raw material costs constitute approximately 90% of the total costs for modified plastics, making the company sensitive to fluctuations in oil prices [58][59]. - The report anticipates that the decline in oil prices will lead to a reduction in raw material costs, benefiting the company's profitability [5][58]. 5. Growth Opportunities - The company is positioned to benefit from the growing demand for lithium battery separators and materials for robotics, which are expected to create new growth trajectories [5][12]. - The increasing penetration of electric vehicles is likely to drive up the demand for modified plastics, with projections indicating that the usage per vehicle could reach 213 kg by 2027 [49][50].