Intretech(SZ:002925) Changjiang Securities·2025-03-13 12:12Investment Rating - The investment rating for the company is upgraded to "Buy" [6]. Core Views - The company has significant revenue growth potential, particularly in the electronic cigarette business, which is expected to see substantial volume growth [4][10]. - The company has set ambitious revenue targets for 2025, aiming for cumulative revenues of 44.625 billion yuan for 2025, 92.82 billion yuan for 2025-2026, and 144.585 billion yuan for 2025-2027, with target values of 53.55 billion yuan, 110.67 billion yuan, and 171.36 billion yuan respectively [2][4]. Summary by Sections Stock Incentive Plans - The company has proposed a stock option plan for 2025, granting options to no more than 921 middle management and core technical personnel at a price of 13.70 yuan per option, totaling up to 21.65 million options, which accounts for 2.79% of the total share capital [2][4]. - An employee stock ownership plan has also been proposed, allowing six executives, including the chairman, and up to 455 middle management personnel to purchase up to 12.35 million shares at a price of 11.3 yuan per share, representing 1.59% of the total share capital [2][4]. Revenue Growth Expectations - The electronic cigarette business is expected to contribute the majority of revenue growth, with projections indicating a potential doubling of revenue in 2025 due to resolved labor issues affecting 2024 orders [10]. - The automotive electronics business is anticipated to maintain a growth rate of around 30% in 2025, driven by rapid development in rearview mirrors and cockpit control modules [10]. - Other established businesses are expected to show steady growth, with increased orders in engraving machines and recovery in health environment businesses [10]. Profitability Outlook - The increasing proportion of high-margin electronic cigarette business and the scale effect are expected to enhance the company's net profit margin [10]. - The company has maintained stable absolute values in expense inputs over the years, and high revenue growth is likely to lead to a decrease in expense ratios, further improving net profit margins [10]. Long-term Growth Potential - The company is focused on steady recovery of existing businesses and gradual ramp-up of new projects, with multiple segments showing good development potential [10]. - The company is expanding its global footprint in automotive electronics, with a manufacturing base in Mexico expected to be operational by 2025 [10]. - New business areas such as smart pet devices, brain-machine products, and high-end bottled water are also expected to contribute positively to future growth [10].