TORCH ELECTRON(603678) 民生证券·2025-03-22 16:29Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its market position and growth potential [4][6]. Core Views - The company reported a revenue of 2.802 billion yuan for 2024, a year-over-year decrease of 20.0%, and a net profit attributable to shareholders of 195 million yuan, down 38.9% year-over-year. The performance aligns with market expectations, influenced by macroeconomic conditions and industry cyclicality [1]. - The company is expected to experience a recovery in demand, with a projected revenue of no less than 4 billion yuan in 2025, representing a growth rate of at least 42.8% [3][4]. - The company is focusing on three strategic areas: electronic components, new materials, and international trade, with a particular emphasis on the recovery of its main business in MLCC (Multi-Layer Ceramic Capacitors) [4]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 650 million yuan, a decline of 17.6% year-over-year, resulting in a net loss of 31 million yuan, marking its first historical loss due to insufficient demand [1]. - The gross margin for 2024 improved by 0.6 percentage points to 31.2%, while the net margin decreased by 2.7 percentage points to 6.3% [1]. - The company recorded impairment losses totaling 6.594 million yuan, impacting its profit for the year [1]. Product Segmentation - Revenue from passive components decreased by 16.4% to 840 million yuan, with a gross margin decline of 9.20 percentage points to 65.0% [2]. - Revenue from active components increased by 25.5% to 150 million yuan, with a gross margin improvement of 0.82 percentage points to 7.7% [2]. - Revenue from international trade fell by 24.6% to 1.65 billion yuan, although the gross margin increased by 4.10 percentage points to 14.6% [2]. Cost and Expenses - The company's expense ratio increased by 4.0 percentage points to 22.2%, with sales expenses rising by 1.0 percentage point to 6.1% and management expenses increasing by 3.3 percentage points to 11.1% [3]. - Accounts receivable decreased by 14.6% to 1.7 billion yuan, while inventory increased by 0.3% to 1.31 billion yuan [3]. Future Projections - The company forecasts net profits of 492 million yuan, 618 million yuan, and 744 million yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 36x, 28x, and 24x [4][5]. - The employee stock ownership plan sets ambitious performance targets for 2025, aiming for a revenue of at least 4 billion yuan and a net profit of no less than 500 million yuan [3].