Huizhong(SZ:300371) Yong Xing Zheng Quan·2025-04-24 08:38Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of its stock [5]. Core Views - The company has been deeply engaged in the ultrasonic flow measurement field for 30 years, establishing itself as an international leader in ultrasonic flow measurement products [2]. - In 2024, the company's performance faced pressure due to various macroeconomic factors, including tight local fiscal funding and a downturn in the real estate market, leading to a decline in revenue and net profit [2]. - The company’s gross margin remained relatively stable at 50.01% in 2024, with a slight year-on-year decrease of 0.79 percentage points [2]. - The company’s revenue from ultrasonic water meters and systems was 199 million yuan, down 32.73% year-on-year, while revenue from ultrasonic heat meters and systems increased by 1.83% to 109 million yuan [2]. - The company’s overseas sales revenue exceeded 50 million yuan in 2024, marking a year-on-year growth of approximately 31.30%, achieving a historical high [3]. - The company is expected to see a significant recovery in performance in the first quarter of 2025, with projected revenues of 461 million yuan, 531 million yuan, and 614 million yuan for 2025, 2026, and 2027 respectively [4]. Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 386 million yuan, a year-on-year decrease of 22.19%, and a net profit attributable to the parent company of 58 million yuan, down 44.65% [1]. - The first quarter of 2025 showed a recovery with operating revenue of 74 million yuan, a year-on-year increase of 47.52%, and a net profit of 7 million yuan, up 71.77% [1]. Business Overview - The company provides integrated solutions for smart water supply and heating, with products including ultrasonic water meters, heat meters, and related management systems [2]. - The company holds independent intellectual property rights for all its products, covering various application stages from data collection to system integration [2]. Market Outlook - The demand for smart water meters in China is expected to grow rapidly due to ongoing policy support in water conservation and smart water management [3]. - The company has successfully secured a contract worth over 130 million yuan for a water meter project in Melbourne, Australia, marking a significant milestone in its overseas expansion [3].