ZAISHENG TECHNOLOGY(SH:603601) Changjiang Securities·2025-04-29 08:45Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 1.48 billion yuan for 2024, a year-on-year decline of 11%, while the net profit attributable to shareholders was 91 million yuan, an increase of 138% year-on-year. The net profit excluding non-recurring items grew by 193% year-on-year [5][10] - In Q1 2025, the company achieved a revenue of 320 million yuan, a decrease of 5% year-on-year, with a net profit of 34 million yuan, reflecting a growth of 4% year-on-year, and a 7% increase in net profit excluding non-recurring items [5][10] Summary by Sections Financial Performance - The company's revenue structure shows that energy-efficient materials accounted for approximately 780 million yuan, or 53% of total revenue, while clean air materials contributed about 540 million yuan, or 36%, and dust-free air conditioning products made up around 130 million yuan, or 9% [10] - The revenue from energy-efficient materials grew by 19% year-on-year, while dust-free air conditioning products saw a 40% increase. However, clean air materials experienced a 2% decline due to market conditions [10] - The gross margin for 2024 was approximately 22%, remaining stable year-on-year, with a net profit margin of about 6.2%, an increase of 3.8 percentage points year-on-year [10] Cash Flow and Future Outlook - The company has significantly improved its cash flow, with a net operating cash flow of approximately 224 million yuan in 2024, compared to only 2 million yuan in the previous year. The cash collection ratio was 0.89, up from 0.74 the previous year [10] - The forecast for net profit attributable to shareholders for 2025 and 2026 is approximately 140 million yuan and 180 million yuan, respectively, corresponding to PE valuations of 25 and 20 times [10]