Sunlord(SZ:002138) Minsheng Securities·2025-04-20 12:05Investment Rating - The report maintains a "Recommended" rating for the company [5]. Core Views - The company reported a strong Q1 2025 performance, achieving sales revenue of 1.461 billion yuan, a year-on-year increase of 16.03%, and a net profit attributable to shareholders of 233 million yuan, up 37.02% year-on-year [1][3]. - The growth is driven by the automotive electronics and energy storage sectors, which together accounted for 56.32% of the company's revenue in Q1 2025, with automotive electronics revenue growing by 65.46% and energy management revenue increasing by 23.87% [1][2]. - The company has optimized its sales structure and maintained steady growth in other business lines, such as ceramics and PCBs, which saw a revenue increase of 5.02% [1]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a gross margin of 36.56%, a slight year-on-year decline of 0.39 percentage points but a quarter-on-quarter increase of 2.07 percentage points [1]. - The company’s Q1 sales revenue decreased by 14.17% quarter-on-quarter, while net profit increased by 12.02% due to ongoing improvements in production efficiency and operational models [2]. Business Segments - The automotive electronics and energy storage sectors are expected to continue driving growth, with projected combined sales revenue of 1.104 billion yuan in 2024, reflecting a year-on-year growth of 62.10% [2]. - The company is recognized as one of the few active Chinese component manufacturers in the global automotive electronics market, with increasing market share in small power automotive transformers [2]. Research and Development - R&D expenses for Q1 2025 reached 116 million yuan, a year-on-year increase of 7.62%, indicating a commitment to strengthening technological barriers and product performance [3]. - The company has made significant breakthroughs in materials and manufacturing processes, enhancing product consistency and efficiency [3]. Future Outlook - The company is projected to achieve net profits of 1.079 billion yuan, 1.333 billion yuan, and 1.615 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 21, 17, and 14 [3][4].