Sunlord(SZ:002138) Minsheng Securities·2025-04-20 12:23Investment 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 PCB, which generated 128 million yuan in revenue, a 5.02% increase year-on-year [1]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a gross margin of 36.56%, a slight decrease of 0.39 percentage points year-on-year but an increase of 2.07 percentage points quarter-on-quarter [1]. - The company’s Q1 sales revenue decreased by 14.17% quarter-on-quarter, but 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 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 processes, enhancing its high-end component layout and manufacturing 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 PE ratios of 21, 17, and 14 [3][4].