China XD(SH:601179) Soochow Securities·2025-04-16 10:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's profitability continues to improve, with performance exceeding market expectations [2] - The report highlights significant growth in revenue and net profit, driven by strong performance in the transformer and switch businesses, as well as successful international market expansion [8] Financial Performance Summary - Total revenue for 2023 was 21,204 million RMB, with a projected increase to 22,281 million RMB in 2024, representing a year-on-year growth of 5.07% [1] - The net profit attributable to shareholders for 2023 was 897.17 million RMB, expected to rise to 1,054.15 million RMB in 2024, reflecting a year-on-year increase of 17.50% [1] - The latest diluted EPS is projected to be 0.21 RMB for 2024, increasing to 0.33 RMB in 2025 [1] Business Segment Performance - The transformer business achieved revenue of 92.18 billion RMB in 2024, up 18% year-on-year, with a gross margin of 14.25% [8] - The switch business reported revenue of 85.04 billion RMB in 2024, an 11% increase year-on-year, with a gross margin of 26.52% [8] - The company has secured a leading market share of approximately 27% in the converter transformer segment [8] Cash Flow and Financial Health - Operating cash flow improved significantly, with a net inflow of 34.99 billion RMB in 2024, a 177% increase year-on-year [8] - The company's asset-liability ratio stands at 44.96%, indicating a stable financial position [6] Future Outlook - The company anticipates a net profit of 1,701.11 million RMB in 2025, representing a substantial growth of 61.37% compared to 2024 [1] - The report suggests that the domestic power grid construction is on an upward trend, and the company's market share in flexible DC converter valves is expected to increase [8]