NEWAY(603699) 东吴证券·2025-04-24 05:23Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - In 2024, the company achieved total revenue of 6.2 billion yuan, a year-on-year increase of 13%, and a net profit attributable to shareholders of 1.16 billion yuan, up 60% year-on-year, with non-recurring net profit at 1.14 billion yuan, increasing by 53% [2] - The company reported a significant increase in gross margin to 38.10%, up 6.7 percentage points year-on-year, with a net profit margin of 18.7%, up 5.5 percentage points year-on-year [3] - The outlook for 2025 indicates stable growth in orders and performance, driven by geopolitical factors and increased investment in the oil and gas industry, particularly in the Middle East [4] Summary by Sections Financial Performance - Total revenue for 2023 was 5.54 billion yuan, projected to grow to 6.24 billion yuan in 2024, with a year-on-year growth rate of 12.50% [1] - The net profit attributable to shareholders for 2023 was 721.80 million yuan, expected to rise to 1.16 billion yuan in 2024, reflecting a growth rate of 60.10% [1] - The earnings per share (EPS) is projected to increase from 0.94 yuan in 2023 to 1.50 yuan in 2024 [1] Revenue Breakdown - In Q4, the company achieved total revenue of 1.78 billion yuan, a year-on-year increase of 37%, with net profit of 330 million yuan, up 146% year-on-year [2] - Revenue from exports reached 3.8 billion yuan, a 26% increase, accounting for 61% of total revenue, while domestic sales decreased by 3% to 2.4 billion yuan [2] Profitability Metrics - The sales gross margin for 2024 is projected at 38.10%, with a net profit margin of 18.7% [3] - The company’s cost control remains stable, with a total expense ratio of 13.1%, down 0.7 percentage points year-on-year [3] Market Outlook - The company is expected to benefit from high visibility in demand from the Middle East and strategic capacity expansion in new products [4] - Major clients such as Saudi Aramco and ADNOC are expected to contribute to significant order growth [4]