Entive(300911) 华泰证券·2025-04-24 08:44Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 45.00 RMB [7][8]. Core Views - The company reported a significant decline in revenue for 2024, with total revenue of 703 million RMB, down 42.7% year-on-year, and a net profit attributable to shareholders of 26.54 million RMB, down 85.2% year-on-year. The decline is attributed to a decrease in overall demand in the integrated stove industry [1][2]. - The company is accelerating its transition to computing power leasing, with revenue from this segment expected to grow as it partners with Suiyuan Technology, a domestic chip unicorn [1][2]. - The company anticipates a stabilization in the integrated stove market as the real estate market recovers, which may lead to a narrowing of revenue declines [1][4]. Summary by Sections Financial Performance - In 2024, the integrated stove business generated 590 million RMB in revenue, a decrease of 46.3% year-on-year, primarily due to a slowdown in new home sales [2]. - The overall gross margin for 2024 was 39.7%, down 9.0 percentage points year-on-year, mainly due to a shift in product structure [3]. - The net profit margin for 2024 was 3.8%, down 10.8 percentage points year-on-year [3]. Profit Forecast and Valuation - The forecasted net profit for 2025-2027 is 104 million RMB, 117 million RMB, and 148 million RMB, respectively, with corresponding EPS of 0.75 RMB, 0.84 RMB, and 1.07 RMB [4][6]. - The company is expected to benefit from a significant reduction in expense ratios in 2025, which may help to release profits [4]. - The target price of 45.00 RMB corresponds to a 60x PE ratio for 2025, reflecting the anticipated growth in the computing power leasing business [4][8].