Duolun Technology(603528)2025-04-26 14:07Investment Rating - The report maintains an "Overweight" rating for the company [8] Core Views - The company's revenue for 2024 is projected at 523 million RMB, a year-on-year decrease of 1.65%, while the net profit attributable to the parent company is expected to be 6.32 million RMB, indicating a turnaround from losses [1] - The report anticipates that the gradual ramp-up of the new energy business will drive revenue recovery in 2025 [1] - The first quarter of 2025 saw a revenue decline of 37.18% year-on-year, attributed to fluctuations in downstream demand and delays in order confirmations from some clients [2] - The demand for charging station construction is expected to accelerate, benefiting the company's new energy business [3] - The company has built a comprehensive intelligent system for driver training and testing, accumulating significant industry data that could enhance its competitive edge [4] - Due to fluctuations in downstream demand, the company's net profit forecasts for 2025 and 2026 have been revised downwards to 9 million RMB and 15 million RMB, respectively [5] Summary by Sections Revenue and Profitability - In 2024, the company achieved a revenue of 523 million RMB, with a net profit of 6.32 million RMB, showing a significant improvement from previous losses [1] - The first quarter of 2025 reported a revenue of 105 million RMB, down 37.18% year-on-year, with a net profit of 289,920 RMB [2] Business Segments - The smart vehicle management business is projected to generate 252 million RMB in 2024, a year-on-year increase of 2.91%, while the smart vehicle inspection business is expected to decline by 8.27% [3] - The charging station and energy storage business is anticipated to grow significantly, with a revenue increase of 307.75% year-on-year [3] Long-term Strategy - The company has developed a full ecosystem for driver training and testing, which is expected to enhance its software product competitiveness and market share in the long term [4] Financial Forecasts - The revised net profit estimates for 2025 and 2026 are 9 million RMB and 15 million RMB, respectively, with an expected EPS of 0.13 RMB and 0.21 RMB [5][7] - The target price for the company's stock has been raised to 8.40 RMB, reflecting a PE ratio of 64.6x for 2025 [5][9]