Richful(300910)2024-03-26 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company has maintained growth in annual performance, with expectations for continued market share increase [5] - The company reported total revenue of 2.816 billion yuan in 2023, a year-on-year decrease of 7.57%, while net profit attributable to the parent company was 606 million yuan, an increase of 3.12% year-on-year [5] - The decline in revenue is attributed to inventory reduction as downstream customers increased procurement in 2022 for supply chain security [5] - The company benefits from a decrease in raw material costs, with lubricant additive material costs at 11,400 yuan per ton, down 9.9% year-on-year, leading to a gross margin of 35.22%, an increase of 4.5 percentage points year-on-year [5] - The company is expanding its market share by establishing partnerships with major downstream lubricant companies such as Shell, Mobil, and Sinopec, which is expected to drive sales growth [5][15] - The company has successfully passed various API certification processes, which enhances its competitive edge and supports its strategic transition to higher-end products [15] Financial Summary - Revenue growth is projected at 43.1% in 2024, 41.0% in 2025, and 26.4% in 2026 [19] - Net profit attributable to the parent company is expected to reach 750 million yuan in 2024, 946 million yuan in 2025, and 1.211 billion yuan in 2026 [19] - The company’s gross margin is forecasted to be 31.6% in 2024 and 29.7% in 2025 [19] - The company’s P/E ratios are projected to be 15X in 2024, 12X in 2025, and 9X in 2026 [15][19]