S.C(SZ:300724) SINOLINK SECURITIES·2025-04-24 01:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5][11]. Core Insights - The company reported a significant increase in revenue and net profit for 2024, with revenue reaching 18.887 billion RMB, up 116.26% year-on-year, and net profit at 2.764 billion RMB, up 69.18% year-on-year. The first quarter of 2025 also showed strong performance with revenue of 4.099 billion RMB, up 58.95%, and net profit of 708 million RMB, up 22.42% [2][5]. - The company has a strong cash flow position, with operating cash flow of 800 million RMB in Q1 2025, a 710% increase year-on-year, and a healthy cash and cash equivalents balance exceeding 10.5 billion RMB [3]. - The company is making strides in multiple sectors including photovoltaic, lithium battery, and semiconductor equipment, with a focus on global expansion and technological advancements [4]. Summary by Sections Performance Review - In 2024, the company achieved total revenue of 18.887 billion RMB, a year-on-year increase of 116.26%, and a net profit of 2.764 billion RMB, up 69.18%. For Q1 2025, revenue was 4.099 billion RMB, reflecting a 58.95% increase, and net profit was 708 million RMB, up 22.42% [2]. Operational Analysis - The company reported a positive cash flow situation with operating cash flow of 800 million RMB in Q1 2025, a significant improvement from the previous year. The contract liabilities at the end of 2024 were 13.1 billion RMB, showing a slight decrease of 8% by Q1 2025, indicating a solid order backlog [3]. - The company’s cash and cash equivalents, along with trading financial assets, exceeded 10.5 billion RMB, enhancing operational resilience [3]. Business Development - The company invested 650 million RMB in R&D in 2024, a 39% increase year-on-year, and made significant progress in photovoltaic technologies, including the mass production of HJT technology and the launch of new equipment for perovskite applications [4]. - The company is expanding its global footprint by establishing subsidiaries in Japan, Singapore, and Malaysia, enhancing its competitive edge in international markets [4]. Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been adjusted downwards to 2.175 billion RMB and 1.046 billion RMB respectively, with an additional forecast for 2027 at 957 million RMB. The corresponding EPS for these years are projected at 6.256, 3.009, and 2.752 RMB, with current P/E ratios of 9, 18, and 20 times [5].