Autowell(SH:688516) SINOLINK SECURITIES·2025-04-22 03:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4]. Core Insights - The company reported a revenue of 9.198 billion RMB for 2024, a year-on-year increase of 45.94%, and a net profit of 1.273 billion RMB, up 1.36% year-on-year. However, the first quarter of 2025 saw a revenue decline of 21.90% and a net profit drop of 57.56%, slightly below expectations [2]. - The company is facing short-term profit pressure due to an industry-wide supply-demand imbalance, but it is strategically positioned to navigate through the cycle with various initiatives, including increased R&D investment and international market expansion [2]. - The company plans to distribute a cash dividend of 16.00 RMB per 10 shares, totaling 504 million RMB, which represents 39.6% of the annual profit for 2024, reflecting a commitment to shareholder returns even during industry downturns [3]. Summary by Sections Performance Review - In 2024, the company achieved a total revenue of 9.198 billion RMB, a 45.94% increase from the previous year, and a net profit of 1.273 billion RMB, which is a 1.36% increase year-on-year. The first quarter of 2025 showed a revenue of 1.534 billion RMB, down 21.90%, and a net profit of 141 million RMB, down 57.56% [2]. Operational Analysis - As of December 31, 2024, the company had an order backlog of 11.831 billion RMB, a decrease of 10.4% year-on-year. New orders signed in 2024 totaled 10.149 billion RMB, down 22.5% year-on-year. The decline in orders is attributed to industry losses leading to slower expansion among downstream customers [2]. - The company recorded a total impairment of 620 million RMB in 2024, primarily from inventory write-downs, reflecting a cautious approach to contract performance cost provisions [2]. - The company increased its R&D expenditure to 4.3 billion RMB in 2024, a 31.5% increase year-on-year, and expanded its R&D workforce by 21.7% to 1,065 employees, focusing on advanced technologies in photovoltaic, lithium battery, and semiconductor sectors [2]. Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been revised down to 788 million RMB and 691 million RMB, respectively, with a new forecast for 2027 at 713 million RMB. The corresponding EPS for these years are projected at 2.500, 2.192, and 2.265 RMB, with current P/E ratios of 14.5, 16.5, and 16.0 times [4].