Neway CNC(SH:688697) Soochow Securities·2025-04-28 11:29Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company has shown steady revenue growth, but its net profit attributable to shareholders is under short-term pressure due to a decline in gross margin, attributed to weak demand in the machine tool industry and intense price competition [2][3] - The decline in gross margin is influenced by changes in accounting standards and foreign exchange losses affecting financial expenses [3] - The company is increasing its R&D investment to enhance product competitiveness and is investing in the construction of a fifth-phase high-end intelligent CNC equipment project, which is expected to open up long-term growth opportunities [4] Summary by Sections Revenue and Profitability - In Q1 2025, the company achieved revenue of 569 million yuan, a year-on-year increase of 3.80%, while the net profit attributable to shareholders was 61 million yuan, a year-on-year decrease of 11.78% [2] - The gross margin for Q1 2025 was 21.11%, down 4.84 percentage points year-on-year, primarily due to accounting policy changes and competitive pricing pressures in the industry [3] R&D and Investment - The company plans to invest 850 million yuan in the fifth-phase high-end intelligent CNC equipment project, which will include approximately 47,500 square meters of production facilities, expected to be completed by June 2027 [4] - R&D expenses for 2024 are projected to be 112 million yuan, a year-on-year increase of 10.35%, indicating a commitment to enhancing product capabilities [4] Financial Projections - The company forecasts total revenue of 2,719 million yuan for 2025, with a year-on-year growth rate of 10.43%, and net profit attributable to shareholders of 360 million yuan, reflecting a growth rate of 10.69% [1][10]