FARATRONIC(SH:600563) Minsheng Securities·2025-04-27 09:38Investment Rating - The report maintains a "Recommended" rating for the company [5][7]. Core Insights - The company reported a revenue of 1.204 billion yuan in Q1 2025, representing a year-on-year growth of 22.78%, and a net profit attributable to shareholders of 264 million yuan, also up by 22.61% [1]. - The gross margin for Q1 2025 was 31.3%, remaining stable, while the net profit margin improved by 2 percentage points to 22.06% [2]. - The revenue share from the downstream electric vehicle sector has increased, accounting for approximately 55% of total revenue in 2024, with solar energy (including storage) at about 23% and industrial control at 15% [3]. - The company aims to maintain stable revenue growth in 2025 while controlling costs and expenses, focusing on expanding into global renewable energy markets, rail transit, and smart grid markets [4]. Financial Projections - Revenue projections for 2025-2027 are 6.038 billion yuan, 7.569 billion yuan, and 9.370 billion yuan, with corresponding growth rates of 26.5%, 25.3%, and 23.8% [5][6]. - Net profit attributable to shareholders is expected to be 1.409 billion yuan, 1.763 billion yuan, and 2.159 billion yuan for the same period, with growth rates of 35.6%, 25.1%, and 22.5% respectively [5][6]. - The projected PE ratios for 2025-2027 are 17x, 13x, and 11x based on the closing price on April 25 [5].