ZMD(SH:688636) Minsheng Securities·2025-04-25 04:30Investment Rating - The report maintains a "Recommended" rating for the company, considering its leading position in the embedded computing industry and expansion into drone and AI sectors [5]. Core Viewpoints - The company reported a significant increase in orders, with a year-on-year growth of 174% in hand orders by the end of Q1 2025, driven by a surge in customer demand [3]. - The company's revenue for 2024 was 440 million yuan, a decrease of 33.9% year-on-year, while the net profit attributable to shareholders was 20 million yuan, down 79.8% year-on-year. However, Q1 2025 showed a revenue increase of 64.7% year-on-year, with a net profit of 10 million yuan, indicating a turnaround [3][4]. - The company has successfully implemented AI technology in various applications, contributing to revenue growth in 2025 [4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 440 million yuan, with a gross margin of 44.8%, although the net margin decreased to 4.4% due to impacts from investment income and other non-operating items [3][5]. - For Q1 2025, the company reported a revenue of 80 million yuan, with a significant increase in new orders, particularly in the embedded and drone sectors [3][4]. Product Segmentation - In 2024, the revenue breakdown showed that the airborne segment generated 280 million yuan (64% of total revenue), while the drone segment saw an impressive growth of 88.5% year-on-year [4]. - The company has diversified its applications into drone, low-altitude economy, and commercial aerospace sectors, with AI technology expected to contribute more significantly in 2025 [5]. Future Projections - The company forecasts net profits of 120 million yuan, 179 million yuan, and 238 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 36x, 24x, and 18x [7][12]. - The projected revenue growth rates for the next few years are 82.1% in 2025, 46.4% in 2026, and 24.1% in 2027, indicating a strong recovery trajectory [7][12].