HONGYUAN ELECTRONICS(603267) Soochow Securities·2025-03-28 13:04Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 1.492 billion yuan for 2024, a year-on-year decrease of 10.98%, and a net profit attributable to shareholders of 154 million yuan, down 43.55% year-on-year [1][8] - The decline in performance is attributed to a slow recovery in the downstream market, particularly in the high-reliability sector, which has led to decreased sales and prices of the company's core product, ceramic capacitors [8] - Despite the challenges, the company has successfully expanded its product lines, particularly in microcontrollers and integrated circuit products, which have seen rapid revenue growth [8] - The company completed the acquisition of Chengdu Rongwei, enhancing its capabilities in microwave module components and electronic components [8] - The company has maintained stable operating cash flow, with a net operating cash flow of 459 million yuan, indicating solid liquidity management [8] Financial Summary - For 2024, the total revenue is projected to be 1.492 billion yuan, with a net profit of 154 million yuan [1][9] - The gross margin is expected to decline by 15.38 percentage points to 34.29% in 2024 [8] - The earnings per share (EPS) for 2024 is estimated at 0.67 yuan, with a projected P/E ratio of 79.21 [1][9] - The company anticipates a recovery in military electronic business, which may lead to a rebound in the market [8] - Future profit forecasts have been adjusted, with net profits expected to be 326 million yuan in 2025 and 481 million yuan in 2026 [8]