Sunrise(SZ:300360) Xin Lang Cai Jing·2025-04-29 04:43Core Viewpoint - The company reported a revenue of 433 million yuan in Q1 2025, a year-over-year decrease of 7.40% and a quarter-over-quarter decrease of 10.29%, while net profit attributable to shareholders was 175 million yuan, showing a year-over-year increase of 56.05% and a quarter-over-quarter increase of 42.18% [1] Group 1: Financial Performance - The company achieved a gross profit margin of 42.52% and a net profit margin of 40.67% in Q1 2025, reflecting an increase of 1.13% and 17.36% year-over-year, indicating a significant improvement in profitability [2] - The company’s operating expenses ratio was 5.00%, with sales, management, financial, and R&D expense ratios at 2.67%, 3.01%, -5.76%, and 5.09% respectively, showing year-over-year changes of -0.23, -0.04, -2.98, and +1.47 percentage points [2] - Other income for the company was 40 million yuan, primarily due to an increase in government subsidies, and fair value changes resulted in a gain of 9.26 million yuan, a significant improvement from a loss of 40.62 million yuan in the same period last year [2] Group 2: Market Expansion - The company’s overseas market expansion has been successful, with exports of electric meters reaching 2.44 billion yuan in Q1 2025, a year-over-year increase of 8.4% [3] - The company has been actively developing markets in Africa, Southeast Asia, and Central Asia, which are expected to further drive revenue growth [3] - The domestic market is currently experiencing a peak in the replacement cycle for smart electric meters, with expectations that this cycle will continue until 2026 [3] Group 3: Profit Forecast and Valuation - The company maintains profit forecasts for 2025-2027, estimating net profits of 794 million, 899 million, and 989 million yuan, with corresponding EPS of 1.54, 1.75, and 1.92 yuan, reflecting year-over-year growth rates of 19.49%, 13.21%, and 9.95% [4] - The company is assigned a target price of 18.48 yuan based on a 12x PE ratio for 2025, considering the accelerated breakthrough in overseas markets [4]