SACO(SZ:002025) Minsheng Securities·2025-04-01 06:23Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][6]. Core Views - The company reported a revenue of 5.02 billion yuan for 2024, a year-over-year decline of 19.1%, and a net profit attributable to shareholders of 0.35 billion yuan, down 53.8% year-over-year. The performance aligns with market expectations [1]. - The company is actively positioning itself in emerging industries and future sectors, with significant growth in its civil and international market segments, leading to a continuous optimization of its industrial structure [1]. - The company plans to achieve a revenue of 5.7 billion yuan in 2025, representing a year-over-year growth of 13.4% [1]. Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 1.03 billion yuan, a year-over-year increase of 2.3%, but reported a net loss of 0.06 billion yuan, marking the first quarterly loss in its history due to a slowdown in defense industry demand [1]. - The gross margin for 2024 improved by 0.4 percentage points to 38.3%, while the net margin decreased by 5.9 percentage points to 8.0% [1]. - The company’s revenue by product for 2024 included: - Relays: 0.25 billion yuan, down 23.7%, with a gross margin increase of 1.58 percentage points to 47.1% - Connectors and integrated interconnect products: 3.39 billion yuan, down 23.6%, with a gross margin increase of 0.89 percentage points to 38.7% - Motors and control components: 1.12 billion yuan, down 11.3%, with a gross margin increase of 0.36 percentage points to 35.6% - Optical communication devices: 0.14 billion yuan, up 7.4%, with a gross margin increase of 1.31 percentage points to 24.6% [2]. Operational Insights - The company experienced an increase in inventory and accounts receivable, with accounts receivable and notes totaling 4.89 billion yuan, up 4.6% from the beginning of the year, and inventory at 1.85 billion yuan, up 74.2% [3]. - The operating cash flow for 2024 was -0.26 billion yuan, a significant decrease from 1.64 billion yuan in 2023, attributed to reduced cash collection and increased material reserve payments due to small-batch and multi-variety orders [3]. Future Outlook - The company is transitioning from a single-component focus to integrated interconnect and drive control solutions, with rapid advancements in product development for key sectors such as commercial aviation and space [4]. - Forecasted net profits for 2025, 2026, and 2027 are 0.70 billion yuan, 0.98 billion yuan, and 1.23 billion yuan, respectively, with corresponding price-to-earnings ratios of 37x, 26x, and 21x [4][5].