JSSMDL(SH:603530) CMS·2025-04-10 09:02Investment Rating - The report maintains a "Strong Buy" rating for the company [4] Core Views - The company has shown strong performance in 2024 with revenue, net profit attributable to shareholders, and net profit excluding non-recurring items reaching 1.345 billion, 311 million, and 302 million yuan respectively, representing year-on-year growth of 40.22%, 96.17%, and 102.17%, which is in line with the forecast range [1][8] - The company has effectively controlled costs, resulting in improved profit margins in Q4 2024, with a gross margin of 43.62% and a net margin of 23.1%, both showing significant year-on-year increases [8] - The company has achieved substantial growth across its business segments, particularly in overseas markets, with notable increases in contract revenue and product sales [8] Financial Performance Summary - Revenue Growth: The company’s total revenue is projected to grow from 959 million yuan in 2023 to 1.892 billion yuan in 2025, reflecting a compound annual growth rate (CAGR) of approximately 41% [3][12] - Profitability: The net profit attributable to shareholders is expected to increase from 158 million yuan in 2023 to 411 million yuan in 2025, with a CAGR of 32% [3][12] - Earnings Per Share (EPS): EPS is forecasted to rise from 0.37 yuan in 2023 to 0.95 yuan in 2025 [3][13] - Valuation Ratios: The price-to-earnings (PE) ratio is projected to decrease from 63.4 in 2023 to 24.5 in 2025, indicating improving valuation as earnings grow [3][13] Business Segment Performance - Revenue by Segment: In 2024, the company reported revenue from various segments: 879 million yuan from composite insulators for substations, 223 million yuan from rubber seals, and 209 million yuan from composite insulators for transmission and transformation lines, with year-on-year growth rates of 34.71%, 14.1%, and 126.57% respectively [8] - International Market Expansion: The company has successfully expanded its overseas business, achieving 742 million yuan in overseas revenue in 2024, a year-on-year increase of 43.05% [8] Competitive Advantages - The company holds a significant market share in the high-end composite insulator market, supplying over 80% of the composite insulator products for more than 70 ultra-high voltage substations [8] - The company is transitioning from being primarily an equipment supplier to a comprehensive solution provider, which is expected to enhance its business scale and market presence [8]