TDG(SH:600330) HTSC·2025-04-29 03:34Investment Rating - The report maintains a "Buy" rating for the company with a target price of 8.25 RMB [6][7]. Core Views - The company's Q1 2025 revenue was 714 million RMB, a year-over-year decrease of 15.39% but a quarter-over-quarter increase of 39.99%. The net profit attributable to the parent company was 47.96 million RMB, up 8.18% year-over-year and up 235.15% quarter-over-quarter. However, the non-recurring net profit dropped significantly by 95.38% year-over-year [1][3]. - The decline in non-recurring net profit is primarily attributed to order delays in the photovoltaic sector, which negatively impacted the specialized equipment manufacturing and installation segment. The company is facing downward pressure in the equipment sector due to market conditions but is actively expanding its materials business to support performance [3][4]. - The company received government subsidies of 48.81 million RMB in Q1 2025, which significantly contributed to its profits for the quarter [2]. Summary by Sections Financial Performance - In Q1 2025, the company reported a comprehensive gross margin of 18.8% and a net margin of 6.74%, with year-over-year changes of -1.3 percentage points and +1.46 percentage points respectively. The total expense ratio was 21.17%, reflecting a year-over-year increase of 4.26 percentage points [2]. - The company’s EPS for 2025 is projected to be 0.22 RMB, with expected EPS for 2026 and 2027 at 0.26 RMB and 0.27 RMB respectively [4][5]. Market Position and Outlook - The company is positioned as a leader in both equipment and materials sectors, with ongoing partnerships with major players in the new energy vehicle and data center industries, which are expected to drive growth in its materials business [3][4]. - The report anticipates that the company will maintain its earnings forecast, with a target price based on a price-to-earnings ratio of 37.5x for 2025, aligning with industry averages [4][11].