TORCH ELECTRON(603678) 东兴证券·2025-03-28 10:45Investment Rating - The report maintains a "Recommended" rating for Torch Electronics, indicating a positive outlook for the company's performance in the coming months [2][10]. Core Insights - The company reported a total revenue of 280.15 million yuan for 2024, a year-on-year decline of 20.04%, and a net profit attributable to shareholders of 19.45 million yuan, down 38.90% year-on-year [3][4]. - Despite the overall pressure on performance, the active components segment showed growth, with revenue increasing by 25.53% year-on-year [4]. - The company is positioned as a core supplier of military MLCCs in China, with expectations for a recovery in this market segment due to increased defense spending and modernization efforts [5][6]. Summary by Sections Financial Performance - In 2024, passive components revenue decreased by 16.36% to 84 million yuan, with a gross margin of 65.00%, down 9.2 percentage points [4]. - Active components revenue reached 15 million yuan, reflecting a growth of 25.53%, with a gross margin of 7.68%, up 0.8 percentage points [4]. - Ceramic materials revenue fell by 16.18% to 13.4 million yuan, with a gross margin of 51.73%, down 3.87 percentage points [4]. - International trade revenue decreased by 24.60% to 165.4 million yuan, with a gross margin of 14.55%, up 4.1 percentage points [4]. Employee Stock Ownership Plan - The company launched its fourth employee stock ownership plan, covering up to 178 employees, with performance targets set for 2025 [6]. - The plan aims to enhance management efficiency and align employee interests with company performance, reflecting confidence in future growth [6]. Future Outlook - The company forecasts earnings per share (EPS) of 1.10 yuan, 1.40 yuan, and 1.74 yuan for 2025, 2026, and 2027 respectively, indicating a recovery trajectory [10][11]. - The expected revenue growth rates for the next few years are projected at 45.91% for 2025, 23.25% for 2026, and 16.53% for 2027 [11].