SANXING(SH:601567) HTSC·2025-04-25 05:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of 38.02 RMB [6][9]. Core Insights - The company achieved a revenue of 14.6 billion RMB in 2024, representing a year-on-year increase of 27.38%, slightly above the previous expectation of 14.424 billion RMB. The net profit attributable to the parent company was 2.26 billion RMB, up 18.69% year-on-year, although slightly below the prior expectation of 2.337 billion RMB [1][4]. - The company is successfully expanding its dual main businesses and markets, with continuous improvement in gross margins. The outlook for the company's dual main business is optimistic, with expectations for sustained rapid growth [1][4]. Revenue and Profitability - In 2024, the company’s revenue from the power distribution and medical services segments was 11.12 billion RMB and 3.26 billion RMB, respectively, with year-on-year increases of 31.8% and 17.1%. The overall gross margin was 34.72%, an increase of 0.73 percentage points year-on-year [2][4]. - The company reported a cash dividend payout ratio of 55.12% in 2024, with a dividend yield of 2.89% [2]. Order Backlog and Market Expansion - As of the end of 2024, the company had an order backlog of 13.202 billion RMB, a year-on-year increase of 25.81%. Domestic orders accounted for 7.454 billion RMB, up 24.88%, while overseas orders reached 5.748 billion RMB, up 27.03% [3]. - The company has made significant strides in expanding its domestic customer base and has seen notable achievements in overseas markets, particularly in Europe and Latin America [3]. Profit Forecast and Valuation - The forecast for net profit attributable to the parent company for 2025-2027 is 2.92 billion RMB, 3.57 billion RMB, and 4.31 billion RMB, with year-on-year growth rates of 29.21%, 22.31%, and 20.75%, respectively [4][5]. - The report assigns a price-to-earnings (PE) ratio of 17 for the smart power distribution segment and 27 for the medical services segment for 2025, reflecting the company's leading position in various sub-sectors of smart power distribution [4][5].