HGTECH(SZ:000988) Shanxi Securities·2025-04-22 04:31Investment Rating - The report maintains a "Buy-A" rating for the company [1] Core Views - The company's sensor and optical connection businesses are experiencing high growth, with expectations for further improvement in profitability [1][6] - The company achieved a revenue of 11.709 billion yuan in 2024, a year-on-year increase of 13.57%, and a net profit of 1.221 billion yuan, up 21.17% year-on-year [4][8] - The company is a leading supplier of optical modules for data center construction and a leader in PTC and sensor technology for electric vehicles [8] Financial Performance - In 2024, the company reported revenues of 11.709 billion yuan, with a net profit of 1.221 billion yuan, and a non-recurring net profit of 0.897 billion yuan [4] - The fourth quarter of 2024 saw a revenue of 2.707 billion yuan, a year-on-year decrease of 10.24% and a quarter-on-quarter decrease of 28.78% [4] - The company expects a net profit of 0.390-0.440 billion yuan for Q1 2025, representing a year-on-year increase of 34.54%-51.79% [4] Business Segments - The smart manufacturing, connection, and perception businesses generated revenues of 3.492 billion, 3.975 billion, and 4.095 billion yuan in 2024, respectively, with year-on-year growth rates of 9.45%, 23.75%, and 9.2% [6] - The smart manufacturing segment focuses on new energy vehicles and has seen significant order growth, particularly in the new energy vehicle sector with a 33% increase [6] - The optical connection segment has expanded its customer base and product offerings, achieving full coverage and mass production of various optical modules [7] Profitability and Cost Management - The company's gross margin and net margin for Q4 2024 were 23.42% and 9.73%, respectively, with quarter-on-quarter increases of 5.80 and 1.47 percentage points [8] - The overall expense ratio decreased, with sales, management, and R&D expense ratios at 4.61%, 2.28%, and 7.49%, respectively [8] Future Projections - The company is projected to achieve net profits of 1.693 billion, 2.051 billion, and 2.552 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 38.7%, 21.1%, and 24.4% [8][9] - The expected earnings per share (EPS) for 2025, 2026, and 2027 are 1.68, 2.04, and 2.54 yuan, respectively [8][9]