CCTC(SZ:300408) Xin Lang Cai Jing·2025-05-07 08:43Event Overview - The company reported Q1 2025 results with revenue of 1.833 billion yuan, a year-over-year increase of 17.24% and a quarter-over-quarter decrease of 8.08%. The net profit attributable to shareholders was 533 million yuan, up 23.02% year-over-year and down 9.28% quarter-over-quarter. The non-recurring net profit was 449 million yuan, reflecting an 18.71% year-over-year increase and a 9.36% quarter-over-quarter decrease. The gross margin was 41.01%, up 0.87 percentage points year-over-year but down 2.56 percentage points quarter-over-quarter. The net profit margin was 29.07%, an increase of 1.34 percentage points year-over-year and a decrease of 0.34 percentage points quarter-over-quarter [1]. Profit Margin Analysis - In Q1, the company experienced a decline in profit margins quarter-over-quarter due to rising costs, particularly from precious metals. The first quarter is traditionally a low season with fewer working days, which contributed to a quarter-over-quarter revenue decline. However, the company still achieved significant year-over-year growth due to demand recovery and successful customer expansion [2]. Product Development and Market Position - The company is continuously enhancing its MLCC (Multi-Layer Ceramic Capacitor) technology through increased R&D investment, overcoming technical challenges, and improving product quality and stability. A comprehensive product matrix has been established, with diverse series tailored to various application scenarios, thereby meeting the differentiated needs of different customer groups. The core competitiveness of the company's MLCC products has significantly improved, leading to a steady increase in market share, which is expected to contribute positively to future performance [3]. - In the ceramic insert sector, the rapid development of emerging technologies like artificial intelligence is reshaping the demand landscape in the optical communication market. This evolution imposes higher requirements on product performance, manufacturing processes, material selection, and overall production workflows. The company is actively pursuing technological breakthroughs and innovations, introducing new products such as MT inserts and ceramic packaging tubes, which have garnered attention from global clients. The accelerating construction of data centers worldwide is positively impacting the demand for ceramic inserts and related products [3]. Investment Outlook - Considering the uncertainties in the macroeconomic environment, the company projects net profits attributable to shareholders for 2025, 2026, and 2027 to be 2.707 billion yuan, 3.35 billion yuan, and 3.943 billion yuan, respectively. This is a revision from previous estimates of 2.736 billion yuan and 3.184 billion yuan for 2025 and 2026. Based on the closing prices for 2025, 2026, and 2027, the price-to-earnings ratios are expected to be 24.3, 19.6, and 16.7 times, respectively, maintaining a "buy" rating [4].