Shanghai Bloom Technology (603325) 开源证券·2024-04-22 09:30Investment Rating - Buy rating (首次) [4] Core Views - The company is a leader in pneumatic conveying systems in China, with downstream industries such as petrochemicals, organic silicon, modified plastics, pharmaceuticals, and food showing high growth potential [4] - Short-term growth is driven by high downstream capital expenditure, while long-term growth is supported by category expansion and overseas market development [4] - Revenue is expected to grow from 1.29 billion yuan in 2023 to 2.05 billion yuan in 2025, with net profit increasing from 297 million yuan to 484 million yuan [4][7] - The company's PE ratio is projected to decrease from 15.7x in 2023 to 9.6x in 2025, indicating undervaluation compared to industry peers [4][7] Industry Overview - The pneumatic conveying equipment market in China is expected to grow significantly, with the synthetic resin sector alone projected to reach an average annual market size of 4 billion yuan from 2023 to 2027, an 81.8% increase compared to 2022 [15] - The company holds a leading domestic market share of 47% in 2022, up from 25.9% in 2020, driven by import substitution [17][18] - Downstream industries such as petrochemicals and chemicals are experiencing high demand, with ethylene production entering a new expansion cycle [73][75] Company Performance - Revenue grew at a CAGR of 39% from 2018 to 2022, reaching 1.04 billion yuan in 2022 [32] - Net profit increased from 54 million yuan in 2018 to 237 million yuan in 2022, with a CAGR of 45% [53] - Gross margin remained stable at around 32% from 2021 to 2025, while net margin improved from 22.7% in 2022 to 23.6% in 2025 [7] - The company's overseas revenue grew from 3.88 million euros in 2020 to 7.95 million euros in 2022, driven by acquisitions and market expansion [24][130] Growth Drivers - Downstream industries such as petrochemicals and chemicals are expanding, with ethylene production expected to increase significantly, driving demand for pneumatic conveying systems [73][75] - The company is expanding into new industries such as food and pharmaceuticals, leveraging its expertise in synthetic resin conveying systems [24][122] - Overseas market development is a key growth driver, with the company acquiring Italian company Gervasi in 2020 to strengthen its global presence [24][130] Financial Projections - Revenue is expected to grow from 1.29 billion yuan in 2023 to 2.05 billion yuan in 2025, with a CAGR of 23.9% [7] - Net profit is projected to increase from 297 million yuan in 2023 to 484 million yuan in 2025, with a CAGR of 25.6% [7] - EPS is expected to rise from 4.46 yuan in 2023 to 7.26 yuan in 2025, with a PE ratio decreasing from 15.7x to 9.6x [7][110]