HGTECH(000988)2025-04-22 05:23Investment Rating - The investment rating for the company is "Buy-A" (maintained) [1] Core Views - The company's sensor and optical connection businesses are experiencing high growth, and there is optimism regarding further improvement in profitability [1][6] - The company is a leading supplier of optical modules for data center construction in China and a leader in PTC and sensor technology for electric vehicles [8] Financial Performance - In 2024, the company achieved revenue of 11.709 billion yuan, a year-on-year increase of 13.57%, and a net profit of 1.221 billion yuan, up 21.17% year-on-year [4][9] - The company expects a net profit of 390 to 440 million yuan in Q1 2025, representing a year-on-year increase of 34.54% to 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, with year-on-year growth rates of 9.45%, 23.75%, and 9.2% respectively [6] - The smart manufacturing segment focuses on new energy vehicles and shipbuilding, with significant order growth in these areas [6] - The optical connection segment has expanded its customer base and product offerings, achieving full coverage and mass production of various optical modules [7] - The sensor business has maintained rapid growth, with revenues of 3.668 billion yuan, a year-on-year increase of 12.93% [6] Profitability and Cost Management - The company's gross margin and net margin for Q4 2024 were 23.42% and 9.73%, respectively, with improvements from the previous quarter [8] - The overall expense ratio has decreased, with sales, management, and R&D expense ratios at 4.61%, 2.28%, and 7.49% respectively [8] Future Projections - The company forecasts net profits of 1.693 billion, 2.051 billion, and 2.552 billion yuan for 2025, 2026, and 2027, with year-on-year growth rates of 38.7%, 21.1%, and 24.4% respectively [8][9] - The expected earnings per share (EPS) for 2025, 2026, and 2027 are 1.68, 2.04, and 2.54 yuan [8]