Autowell(SH:688516) HTSC·2025-04-24 02:43Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 48.06 RMB [8][9]. Core Views - The company reported a revenue of 9.198 billion RMB in 2024, a year-on-year increase of 45.94%, while the net profit attributable to shareholders was 1.273 billion RMB, a slight increase of 1.36% [1]. However, the net profit fell short of expectations due to significant impairment losses influenced by fluctuations in the photovoltaic industry [1][2]. - In Q1 2025, the company experienced a revenue decline of 21.90% year-on-year, amounting to 1.534 billion RMB, and a net profit drop of 57.56% year-on-year, totaling 141 million RMB [1][2]. - The company is actively expanding its business in semiconductor and lithium battery equipment, which is expected to drive long-term growth despite current challenges in the photovoltaic sector [1][4]. Summary by Sections Financial Performance - In 2024, the company signed new orders worth 10.149 billion RMB, a decrease of 22.49% year-on-year, with a gross margin of 32.90%, down 3.65 percentage points [2]. The gross margin further declined to 26.97% in Q1 2025, a drop of 7.55 percentage points year-on-year [2]. - The net profit margin for 2024 was 13.84%, down 6.09 percentage points year-on-year, and further decreased to 9.21% in Q1 2025, down 7.74 percentage points year-on-year [3]. Business Development - The company has secured multiple orders for the 0BB series welding machines and is actively developing XBC battery equipment, which is expected to enhance order resilience and profitability [4]. - The semiconductor equipment orders exceeded 100 million RMB, indicating a strong performance in this segment [4]. Profit Forecast and Valuation - The net profit forecast for 2025 and 2026 has been revised down to 841.90 million RMB and 849.76 million RMB, representing declines of 51% and 54% respectively [5]. The estimated net profit for 2027 is projected at 911 million RMB [5]. - The target price has been adjusted to 48.06 RMB, based on an 18x PE ratio for 2025, reflecting the rapid progress in semiconductor and other business areas [5].