THEC(BJ:833509) Soochow Securities·2025-04-27 00:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The recovery of the consumer electronics industry has driven a significant increase in market demand, with the company reporting a revenue of 194 million yuan in 2024, a year-on-year increase of 14.54%, and a net profit attributable to shareholders of 50.44 million yuan, up 30.46% year-on-year. In Q1 2025, the company achieved a revenue of 39 million yuan, a year-on-year increase of 23.84%, and a net profit of 10 million yuan, up 125.39% year-on-year [2] - The growth in performance is attributed to the implementation of national consumption promotion and stability policies, alongside a notable recovery in the consumer electronics sector driven by technological innovation and market demand. The sales of electronic measurement instruments have significantly increased [2][3] - The company has optimized its operational, sales, and profit models, enhancing cost control across the entire process. In 2024, the sales, management, R&D, and financial expense ratios were 8.02%, 8.90%, 16.17%, and -0.80%, respectively, showing improvements compared to the previous year [2] Revenue and Profitability - The component parameter testing instruments and safety wire testing instruments have shown steady growth, contributing nearly 70% of total revenue. The revenue from component parameter testing instruments is expected to increase by 14.80% to 88 million yuan in 2024, while safety wire testing instruments are projected to grow by 15.71% to 44 million yuan [3] - The company has successfully developed a series of new instruments focused on the analysis and testing of new energy charging and storage products, enhancing its market share and core competitiveness [3] - The company has introduced seven new products in 2024, including battery pack internal resistance testing systems and modular wiring harness testing systems, entering small-scale production [4] Financial Forecasts - The company has adjusted its net profit forecasts for 2025 and 2026 to 62 million yuan and 75 million yuan, respectively, with a new forecast for 2027 set at 91 million yuan. The corresponding latest P/E ratios are 66.26, 54.45, and 45.00 [4] - The company is expected to benefit from the rising consumption capacity in emerging markets and the acceleration of digitalization [4]