HSSM(SZ:002290) Minsheng Securities·2025-04-24 08:23Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential stock price increase of over 15% relative to the benchmark index [6]. Core Viewpoints - The company reported a significant profit release in Q1 2025, with revenue of 630 million yuan, a year-on-year increase of 14.2%, and a net profit attributable to shareholders of 50.95 million yuan, up 82.7% year-on-year. This growth is attributed to the production capacity increase from its subsidiary's new high-end intelligent composite materials production line and effective cost control measures [1]. - The company is expected to benefit from the overall recovery in the home appliance market, with a retail scale of 179.8 billion yuan in Q1 2025, reflecting a 2.1% year-on-year growth. The company achieved double-digit revenue growth in this sector [2]. - The company is actively developing an integrated hardware and software platform in the AI field, focusing on domestic AI chip development and enhancing hardware performance in collaboration with quality suppliers [3]. - Revenue projections for 2025-2027 are 3 billion, 3.3 billion, and 3.6 billion yuan, with net profits of 208 million, 284 million, and 328 million yuan respectively. The corresponding P/E ratios are projected to be 30, 22, and 19 times [4]. Financial Summary - In Q1 2025, the company achieved a gross profit margin of 15.9%, an increase of 5.5 percentage points year-on-year. The R&D expense ratio rose to 3.8%, while the financial expense ratio turned positive due to reduced exchange gains [1]. - The company forecasts a net profit growth rate of 112% for 2025, with earnings per share expected to reach 0.84 yuan [5][10].