大华股份：Q1业绩稳健，出售子公司聚焦主业-20250421

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 22.85 [6][7]. Core Views - The company reported a steady revenue of RMB 6.256 billion in Q1 2025, showing a year-on-year increase of 1.22% but a quarter-on-quarter decrease of 35.71%. The net profit attributable to the parent company was RMB 6.53 billion, reflecting a year-on-year growth of 16.45% and a quarter-on-quarter increase of 81.11%. The gross margin stood at 40.13%, down 1.41 percentage points year-on-year but up 5.82 percentage points quarter-on-quarter. The growth in net profit is attributed to revenue growth and effective cost control, with total operating costs increasing only by 0.4% year-on-year [1][2]. - The company has successfully sold its stake in Huacheng Network, focusing on its core business to better respond to industry changes and geopolitical risks affecting overseas operations [3]. - The financial management of the company is commendable, with a significant reduction in financial expenses by 204.14% year-on-year, primarily due to increased foreign exchange gains. The net cash flow from operating activities increased by 48.59% year-on-year, driven by higher collections and reduced tax payments [2]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of RMB 62.56 billion, with a year-on-year growth of 1.22% and a quarter-on-quarter decline of 35.71%. The net profit attributable to the parent company was RMB 6.53 billion, marking a year-on-year increase of 16.45% and a quarter-on-quarter rise of 81.11%. The gross margin was 40.13%, reflecting a year-on-year decrease of 1.41 percentage points but an increase of 5.82 percentage points from the previous quarter [1][2]. Cost Management - The company maintained good cost control, with selling, general, and administrative expenses at 16.37%, research and development expenses at 15.50%, and a slight decrease in management expenses. Financial expenses decreased significantly, and the net cash flow from operating activities showed a strong increase [2]. Strategic Moves - The sale of the 32.7321% stake in Huacheng Network for RMB 716.83 million allows the company to concentrate on its main business, which is crucial in navigating the current market pressures and geopolitical risks [3]. Profit Forecast and Valuation - The company’s revenue projections for 2025-2027 are RMB 344.92 billion, RMB 378.24 billion, and RMB 421.31 billion, respectively. The expected EPS for these years is RMB 1.17, RMB 1.30, and RMB 1.45. The target price is set at RMB 22.85, based on a PE ratio of 19.5 times for 2025 [4].