China XD(601179) Changjiang Securities·2025-04-27 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a revenue of 22.828 billion yuan for 2024, representing a year-on-year increase of 5.1%. The net profit attributable to shareholders was 1.05 billion yuan, up 17.5% year-on-year, while the net profit excluding non-recurring items reached 1 billion yuan, a significant increase of 55.5% year-on-year [3][4]. - In Q4 2024, the company achieved a revenue of 7.04 billion yuan, a year-on-year increase of 2.7%, but the net profit attributable to shareholders decreased by 24.9% to 270 million yuan. The net profit excluding non-recurring items was 220 million yuan, up 11.5% year-on-year [3][4]. - For Q1 2025, the company reported a revenue of 5.26 billion yuan, a year-on-year increase of 10.9%, with a net profit attributable to shareholders of 290 million yuan, up 42.1% year-on-year, and a net profit excluding non-recurring items also at 290 million yuan, reflecting a 54.1% increase year-on-year [3][4]. Financial Performance Summary - The company's total revenue for 2024 was 22.828 billion yuan, with a gross profit margin of 21%. The gross profit was 4.601 billion yuan, and the operating profit was 1.373 billion yuan, representing 6% of total revenue [12]. - The company’s net cash flow from operating activities reached 3.499 billion yuan in 2024, a year-on-year increase of 176.6% [8]. - The company’s inventory at the end of Q1 2025 was 4.868 billion yuan, a year-on-year increase of 51.2%, indicating a significant future delivery capacity [8]. Revenue Breakdown - In 2024, the revenue from transformers was 9.218 billion yuan, up 17.8% year-on-year, while switch revenue was 8.504 billion yuan, up 11.0% year-on-year. The revenue from power electronics, engineering, and trade was 2.456 billion yuan, down 32.9% year-on-year [8]. - Domestic revenue accounted for 19.002 billion yuan, a year-on-year increase of 5.9%, while international revenue was 2.825 billion yuan, up 6.5% year-on-year, making up approximately 13% of total revenue [8]. Profitability Metrics - The net profit margin for 2024 was 4.73%, an increase of 0.5 percentage points year-on-year, while for Q1 2025, it reached 5.6%, marking a new high since 2019 [8]. - The gross margin for transformers in 2024 was 14.35%, an increase of 5.88 percentage points year-on-year, and for switches, it was 26.52%, up 1.29 percentage points year-on-year [8].