QIFAN(SH:605222) Guohai Securities·2025-04-28 15:35Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has seen a steady increase in submarine cable orders, while the land cable business remains stable [1] - The company reported a revenue of 22.764 billion yuan in 2024, a year-on-year decrease of 2.5%, and a net profit attributable to shareholders of 136 million yuan, down 68% year-on-year [4] - In Q1 2025, the company achieved a revenue of 4.124 billion yuan, a year-on-year decline of 14.1%, with a net profit of 70 million yuan, down 17.7% year-on-year [4] - The company’s gross margin improved to 7.3% in Q1 2025, up 0.7 percentage points year-on-year and 4.7 percentage points quarter-on-quarter [5] - The company has secured approximately 1.4 billion yuan in submarine cable orders in 2024, a significant increase of 563% year-on-year [5] - The company is expected to deliver submarine cable orders worth 1.2 billion yuan in 2025, contributing a net profit of 140 million yuan [5] Financial Summary - The company’s revenue projections for 2025, 2026, and 2027 are 24.073 billion yuan, 24.857 billion yuan, and 25.614 billion yuan respectively, with corresponding net profits of 480 million yuan, 601 million yuan, and 724 million yuan [5][7] - The projected P/E ratios for 2025, 2026, and 2027 are 12.49x, 9.96x, and 8.28x respectively [5][7] - The company’s return on equity (ROE) is expected to improve from 3% in 2024 to 12% by 2027 [8]