Huizhong(SZ:300371) CMS·2025-04-22 11:20Investment Rating - The report maintains a "Strong Buy" rating for the company [1][6][2] Core Views - The company reported a significant profit growth in Q1 2025, with a revenue increase of 47.52% year-on-year, reaching 73.65 million yuan, and a net profit increase of 71.77%, amounting to 6.97 million yuan [1][6] - Despite a challenging macroeconomic environment in 2024, the company is expected to benefit from the expansion of its overseas business and trends in smart water management and thermal measurement reform [6][1] - The company has launched an employee stock ownership plan to enhance employee motivation, with performance targets based on net profit growth [6][1] Financial Data and Valuation - In 2024, the company achieved total revenue of 386 million yuan, a decrease of 22.19% year-on-year, and a net profit of 57.72 million yuan, down 44.65% year-on-year [1][11] - The projected revenues for 2025, 2026, and 2027 are 411 million yuan, 441 million yuan, and 496 million yuan, respectively, with corresponding net profits of 65 million yuan, 72 million yuan, and 81 million yuan [1][11] - The company’s PE ratios for 2025, 2026, and 2027 are estimated at 31.1, 27.8, and 24.6, respectively [12][1] Product Performance - The ultrasonic water meter segment faced challenges, with a revenue decline of 32.73% in 2024, while the ultrasonic heat meter segment saw a slight revenue increase of 1.83% [6][1] - The overseas revenue for 2024 was 50 million yuan, reflecting a year-on-year growth of 31%, driven by successful bids for projects such as the ultrasonic water meter project in Australia [6][1] Shareholder Information - The company has a total share capital of 201 million shares, with 134 million shares in circulation and a total market capitalization of 2 billion yuan [2][6]