China XD(SH:601179) Huaan Securities·2025-04-17 12:33Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant improvement in profitability and optimization of its business structure, with a notable increase in gross margin [1][5] - The company reported a revenue of 22.175 billion yuan in 2024, representing a year-on-year growth of 5.59%, and a net profit attributable to shareholders of 1.054 billion yuan, up 17.50% year-on-year [4][5] - For Q1 2025, the company achieved a revenue of 5.245 billion yuan, a year-on-year increase of 11.27%, and a net profit of 295 million yuan, up 42.10% year-on-year [4][5] Financial Performance - The company’s revenue by business segment in 2024 included: - Switches: 8.504 billion yuan, up 10.97%, with a gross margin of 26.52% - Transformers: 9.218 billion yuan, up 10.26%, with a gross margin of 14.35% - Capacitors and surge protectors: 985 million yuan, up 20.28%, with a gross margin of 23.20% - R&D and testing: 665 million yuan, up 2.52%, with a gross margin of 51.73% [5] - The company expects net profits for 2025, 2026, and 2027 to be 1.697 billion yuan, 2.006 billion yuan, and 2.369 billion yuan respectively, with corresponding P/E ratios of 19, 16, and 13 [6] Key Financial Indicators - The company’s key financial indicators for 2024 and projections for 2025-2027 include: - Revenue: 22.281 billion yuan (2024A), projected to grow to 25.432 billion yuan (2025E) and 32.516 billion yuan (2027E) - Net profit: 1.054 billion yuan (2024A), projected to grow to 1.697 billion yuan (2025E) and 2.369 billion yuan (2027E) - Gross margin: 20.7% (2024A), projected to increase to 22.6% (2027E) [8]