SACO(SZ:002025) Xin Lang Cai Jing·2025-05-13 02:41Core Viewpoint - The company reported a significant decline in revenue and net profit for 2024, primarily due to a slowdown in defense industry demand and adjustments in product structure, but anticipates a recovery in orders and profitability in the future as market conditions improve [2][3]. Financial Performance - 2024 revenue was 50.25 billion yuan, down 19.08%, with a net profit of 3.47 billion yuan, down 53.75%, and a non-recurring net profit of 3.11 billion yuan, down 55.02% [2][3]. - The gross margin increased to 38.34%, up 0.35 percentage points, while the net margin decreased to 8.04%, down 5.94 percentage points [2]. - In Q1 2025, revenue was 14.66 billion yuan, down 9.15%, with a net profit of 0.47 billion yuan, down 79.35%, and a non-recurring net profit of 0.38 billion yuan, down 81.95% [3]. Cost and Expense Analysis - The company's operating expenses increased, with the three expense rates rising to 14.20%, up 3.30 percentage points, driven by higher R&D expenses and asset impairment losses [2][3]. - R&D expenses grew by 7.51 billion yuan, up 7.50%, with the number of R&D personnel increasing by 10.28% to 2,243 [3]. Cash Flow and Inventory - Operating cash flow net amount decreased by 19.01 billion yuan, primarily due to a slowdown in traditional market demand and changes in customer payment terms [3]. - Contract liabilities increased significantly to 1.37 billion yuan, up 87.46%, and inventory rose to 18.51 billion yuan, up 74.16% [3]. Product Segment Performance - Revenue from connectors and interconnection products in 2024 was 33.88 billion yuan, down 23.57%, accounting for 67.43% of total revenue [5]. - Revenue from motors and control components was 11.16 billion yuan, down 11.25%, while relays generated 2.49 billion yuan, down 23.66% [5]. Strategic Initiatives - The company is focusing on high-end connectors, micro motors, and optical devices, with over 30% of revenue coming from new strategic industries [6]. - Recent acquisitions aim to enhance market competitiveness and expand product offerings in the defense sector [6]. Future Outlook - The company expects a recovery in revenue and profitability as downstream demand improves, with significant growth in product orders anticipated [3][6]. - Projections for 2025-2027 indicate revenues of 63.24 billion yuan, 72.97 billion yuan, and 80.50 billion yuan, with corresponding net profits of 8.13 billion yuan, 9.23 billion yuan, and 10.02 billion yuan [8].