Sunrise(300360) HTSC·2025-04-21 01:35Investment Rating - The report maintains a "Buy" rating for the company with a target price of 18.48 RMB [7][9]. Core Insights - The company achieved a revenue of 2.03 billion RMB in 2024, representing a year-on-year growth of 14.54%, and a net profit of 665 million RMB, up 9.45% year-on-year. The growth is driven by the peak replacement cycle of smart electric meters and the upgrade of distribution network requirements [1][2]. - The gross margin for 2024 is reported at 47.55%, an increase of 2.72 percentage points year-on-year, while the net profit margin stands at 33.03%, a decrease of 1.34 percentage points due to reduced fair value gains [2][3]. - The company is successfully expanding its overseas market, with revenue from international operations reaching 203 million RMB in 2024, a significant increase of 56.04%, accounting for 10% of total revenue [4][5]. Revenue and Profitability - The main revenue source, smart metering and collection systems, generated 1.641 billion RMB in 2024, growing 14.31% year-on-year, with a gross margin of 51.15% [3]. - The Internet of Things (IoT) sensors and accessories segment saw a remarkable revenue increase of 48.85% year-on-year, reaching 167 million RMB, with a gross margin of 33.12% [3]. - The company expects the replacement cycle for new smart meters to continue until 2026, driven by the demand for controllable and measurable resources [3]. Financial Forecast and Valuation - The forecasted net profit for 2025-2027 is 794 million RMB, 899 million RMB, and 989 million RMB, with year-on-year growth rates of 19.49%, 13.21%, and 9.95% respectively [5][6]. - The report assigns a price-to-earnings (PE) ratio of 12 for 2025, reflecting the company's strong overseas market performance and growth potential [5][6].