ZAISHENG TECHNOLOGY(603601) 东吴证券·2025-04-25 08:23Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company has shown signs of recovery in gross margin, with new products and applications contributing positively to its performance [7] - The company is focusing on clean energy and energy-saving sectors, aiming to mitigate traditional market fluctuations and explore new growth points [7] Financial Performance Summary - For 2024, the company is expected to achieve total revenue of 1.476 billion yuan, a decrease of 10.87% year-on-year, while the net profit attributable to shareholders is projected to be 90.75 million yuan, an increase of 137.99% year-on-year [7] - In Q1 2025, the company is expected to generate revenue of 324 million yuan, down 4.6% year-on-year, with a net profit of 33.56 million yuan, up 3.7% year-on-year [7] - The gross margin for 2024 is projected to be 22.0%, remaining stable compared to the previous year, while Q1 2025 gross margin is expected to improve to 25.1% [7] - Operating cash flow has significantly improved, with net cash flow from operating activities for 2024 expected to be 224 million yuan, an increase of 2.22 million yuan year-on-year [7] Product and Market Development - The company has successfully expanded its new products and applications, with revenues from clean air materials, energy-saving materials, and dust-free air conditioning products showing varied performance [7] - The revenue from clean air materials is expected to decline by 11.5% year-on-year in Q1 2025, while revenues from PTFE membrane materials and AGM separators are expected to grow rapidly [7] Profitability Metrics - The company’s net profit margin for 2024 is projected to be 7.1%, an increase of 4.3 percentage points year-on-year, driven by reduced expenses and lower impairment losses [7] - The earnings per share (EPS) for 2025 is expected to be 0.12 yuan, with a price-to-earnings (P/E) ratio of 29.67 based on the latest diluted EPS [1][8]