EBSCN·2025-03-31 08:02Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [1][13]. Core Views - The company achieved a record high in 2024 with operating revenue of 24.91 billion yuan, a year-on-year increase of 13.4% (adjusted) [5]. - The net profit attributable to shareholders reached 3.70 billion yuan, up 21.8% (adjusted) year-on-year, with an earnings per share (EPS) of 2.62 yuan [5]. - The gross margin was 32.5%, a decrease of 1.4 percentage points year-on-year, while the net profit margin increased by 1.4 percentage points to 15.9% [5]. - The company plans to distribute a dividend of 1.00 yuan per share, with a payout ratio of approximately 37% [5]. Summary by Sections Emerging Equipment Business - The emerging equipment segment generated revenue of 10.12 billion yuan in 2024, reflecting a year-on-year growth of 13.7% [8]. - Key areas of growth included basic components, new energy vehicle drive systems, new energy generation, marine engineering equipment, and industrial conversion, with respective revenue growth rates of 11.0%, 24.0%, 5.7%, 18.0%, and 15.9% [8]. Rail Transit Equipment Business - The rail transit equipment segment achieved revenue of 14.64 billion yuan, also a 13.4% increase year-on-year [6]. - Specific revenue contributions came from rail transit electrical equipment (10.99 billion yuan), rail engineering machinery (1.89 billion yuan), communication signals (1.11 billion yuan), and other rail transit equipment (650 million yuan), with growth rates of 7.4%, 12.2%, 67.5%, and 95.0% respectively [6]. - The company maintained over 50% market share in domestic urban rail traction systems for 13 consecutive years [6]. Future Growth Drivers - The company is expected to benefit significantly from the upcoming large-scale replacement of old diesel locomotives and the increasing demand for high-level maintenance of electric multiple units (EMUs) [7]. - In 2024, the China State Railway Group planned to bid for 509 sets of five-level repairs and 268.25 sets of four-level repairs, representing year-on-year increases of 371.3% and 136.9% respectively [7]. Financial Projections - The report forecasts net profits of 4.30 billion yuan, 4.81 billion yuan, and 5.35 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS estimates of 3.14 yuan, 3.51 yuan, and 3.91 yuan [13]. - Revenue projections for the next few years are 28.14 billion yuan in 2025, 31.09 billion yuan in 2026, and 34.26 billion yuan in 2027, with growth rates gradually decreasing [13].