ETERN(SH:600105) Minsheng Securities·2025-04-24 08:23Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Insights - The company demonstrated stable overall performance in 2024, with a revenue of 4.111 billion yuan, a year-on-year decrease of 5.4%, while achieving a net profit attributable to shareholders of 61 million yuan, a year-on-year increase of 42% [1][2]. - In Q1 2025, the company reported a revenue of 878 million yuan, a year-on-year increase of 7.5%, and a net profit attributable to shareholders of 290 million yuan, a significant year-on-year increase of 960.6% [1][3]. - The investment income significantly boosted the company's profits in Q1 2025, primarily due to equity method recognition of investment income from an associate, amounting to 292 million yuan, which is an increase of 287 million yuan compared to the same period last year [3]. Business Segment Performance - Optical Communication: In 2024, revenue reached 1.116 billion yuan, a year-on-year increase of 35.6%, with a gross margin of 16.60%, up 3.26 percentage points. The growth was driven by the release of operator orders and increased production and sales of optical cable products [2]. - Automotive Wiring Harness: Revenue in 2024 was 1.206 billion yuan, a year-on-year decrease of 13.7%, with a gross margin of 13.18%, down 1.03 percentage points [2]. - Power Engineering: Revenue in 2024 was 1.041 billion yuan, a year-on-year decrease of 30.0%, with a gross margin of 19.08%, down 1.02 percentage points [2]. - Big Data Applications: Revenue in 2024 was 59 million yuan, a year-on-year decrease of 38.1%, with a gross margin of 61.95%, up 19.99 percentage points [2]. - Superconductors and Copper Conductors: Revenue in 2024 was 586 million yuan, a year-on-year increase of 33.3%, with a gross margin of 10.60%, down 4.66 percentage points [2]. Future Outlook - The company is deepening its layout in cutting-edge fields such as optical chips and superconductors, with significant future growth potential. The optical chip products are entering mass delivery stages, and the company is expanding its production capacity in the superconducting field [3][4]. - The projected net profits for 2025-2027 are estimated at 361 million yuan, 161 million yuan, and 203 million yuan, respectively, with corresponding PE multiples of 26X, 58X, and 46X [4][5].