FIRST TRACTOR(601038) Huaan Securities·2025-04-02 06:19Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 11.90 billion yuan for 2024, a year-on-year increase of 3.21%, while the net profit attributable to shareholders was 0.92 billion yuan, a decrease of 7.52% [4] - The company is focusing on enhancing its overseas market presence and high-end product offerings, despite short-term pressure on profitability [6][7] Financial Performance Summary - For 2024, the company achieved a revenue of 11.90 billion yuan, with a year-on-year growth of 3.21% [4] - The net profit attributable to shareholders was 0.92 billion yuan, reflecting a decline of 7.52% year-on-year [4] - The gross margin and net margin for 2024 were 14.78% and 7.82%, respectively, both showing a decrease [5] - The company sold 74,300 large and medium-sized tractors in 2024, marking a 2.73% increase year-on-year [6] - The company expects revenues of 12.56 billion yuan, 13.84 billion yuan, and 15.25 billion yuan for 2025, 2026, and 2027, respectively [7] - The projected net profit attributable to shareholders for 2025, 2026, and 2027 is 0.99 billion yuan, 1.09 billion yuan, and 1.20 billion yuan, respectively [7] Cost Management and Profitability - The company has optimized its cost management, with sales, management, and R&D expense ratios at 1.31%, 2.98%, and 4.34%, respectively [5] - The increase in R&D expense ratio is attributed to investments in high-end, intelligent, and green technology projects [5] Market Position and Strategy - The company is enhancing its product lineup and market competitiveness, particularly in the tractor segment [6] - The company is expanding its overseas market strategy, including a contract for supplying 301 tractors to Nigeria [6]