PONY(300887) Changjiang Securities·2025-04-23 10:35Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company has experienced significant revenue declines in 2024 and Q1 2025, with a 37.5% year-on-year decrease in revenue to 1.541 billion yuan in 2024, and a 24.7% decline to 252 million yuan in Q1 2025. The net profit attributable to shareholders turned to a loss of 356 million yuan in 2024, compared to a profit in the previous year [4][8]. - The report highlights that the company is undergoing a painful transformation, with expectations for profit recovery in 2025. The decline in revenue is attributed to several factors, including industry-specific events affecting key sectors like military testing and biomedicine, adjustments in customer structure, and a strategic contraction in less profitable business segments [8][4]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 1.541 billion yuan, a decrease of 37.5% year-on-year. The net profit attributable to shareholders was a loss of 356 million yuan, compared to a profit in the previous year. For Q1 2025, revenue was 252 million yuan, down 24.7% year-on-year, with a net loss of 111 million yuan [4][8]. - The revenue breakdown for 2024 shows significant declines across various business segments, with life sciences and health environmental revenue dropping by 45.53% to 1.077 billion yuan [8]. Business Strategy - The company is focusing on deepening customer demand, particularly in biomedicine, cosmetics, medical devices, and new energy vehicles. It aims to enhance laboratory capacity utilization and control capital expenditures while optimizing sales incentives and improving operational cash flow [8][4]. Profitability Outlook - The report forecasts gradual profit recovery, with expected revenues of 1.752 billion yuan in 2025, 1.986 billion yuan in 2026, and 2.243 billion yuan in 2027, reflecting year-on-year growth rates of 13.7%, 13.3%, and 12.9% respectively. The net profit attributable to shareholders is projected to improve to 37 million yuan in 2025 and reach 248 million yuan by 2027 [8][11].