StarPower(SH:603290) HTSC·2025-04-28 07:12Investment Rating - The report maintains a "Buy" rating for the company with a target price of 88.97 RMB [7][4]. Core Views - The company experienced a revenue decline of 7.44% year-on-year in 2024, with total revenue of 3.391 billion RMB and a net profit of 508 million RMB, which was below expectations [1][2]. - The decline in revenue was primarily due to price reductions in the downstream electric vehicle sector and inventory destocking in the photovoltaic industry, alongside increased depreciation and R&D expenses [1][2]. - For 2025, the company plans to optimize its product structure, focusing on increasing shipments of automotive-grade IGBT modules and silicon carbide (SiC) modules, while also expanding into new business areas such as IPM and MCU [1][3]. Summary by Sections Financial Performance - In 2024, IGBT module revenue accounted for over 90% of total revenue, with industrial, new energy, and home appliance sectors contributing 32%, 59%, and 8% respectively [2]. - The company reported a 14.22% year-on-year revenue growth in Q1 2025, with total revenue of 919 million RMB, although net profit decreased by 36.22% year-on-year [1][2]. Market Outlook - The company is expected to benefit from the stabilization of price reductions in the industry and the ramp-up of its new production lines, particularly in the automotive sector [3]. - The introduction of new IGBT modules based on advanced technology is anticipated to drive sales in the photovoltaic and energy storage markets [3]. Revenue and Profit Forecast - The revenue forecast for 2025 has been adjusted downwards by 9% to 4.078 billion RMB, with net profit estimates reduced by 24% to 620 million RMB [4][6]. - The company is projected to achieve a revenue of 5.684 billion RMB by 2027, with a net profit of 1.035 billion RMB [4][6].