TORCH ELECTRON(603678) 东兴证券·2025-03-28 12:23Investment 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 2.80 billion yuan for 2024, a decrease of 20.04% year-on-year, and a net profit attributable to shareholders of 194.52 million yuan, down 38.90% year-on-year [3][4]. - Despite the overall revenue decline, the active components segment saw a revenue increase of 25.53%, driven by growth in semiconductor chips across various applications [4]. - The military MLCC market is expected to recover, supported by national defense spending and modernization efforts, positioning the company as a key supplier in this sector [5][6]. - The fourth employee stock ownership plan aims to enhance management efficiency and align employee interests with company performance, with performance targets set for 2025 [6][10]. Financial Performance Summary - In 2024, passive components revenue decreased by 16.36% to 840 million yuan, while active components revenue increased to 150 million yuan [4]. - The company forecasts significant revenue growth in the coming years, with projected earnings per share (EPS) of 1.10 yuan in 2025, 1.40 yuan in 2026, and 1.74 yuan in 2027 [10][11]. - The total revenue is expected to rebound to 4.09 billion yuan in 2025, reflecting a growth rate of 45.91% [11]. Market Position and Strategy - Torch Electronics is recognized as a core supplier of military MLCCs, which is anticipated to drive a recovery in its business performance [5][6]. - The company has established a strong competitive advantage through its extensive experience and proprietary technologies in the electronic components and new materials sectors [6][12].