R&T(SZ:002790) Changjiang Securities·2025-04-29 09:42Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company's revenue for 2024 is projected to be 2.358 billion yuan, with a year-on-year growth of 8%, while the net profit attributable to the parent company is expected to decline by 17% to 181 million yuan [2][6]. - In Q4 2024, the company achieved a revenue of 648 million yuan, with a net profit of 55 million yuan, reflecting a year-on-year increase of 2% and 28% respectively [2][6]. - For Q1 2025, the company is expected to see a revenue drop of 21% year-on-year to 412 million yuan, with net profit declining by 63% to 21 million yuan [2][6]. Revenue Analysis - The decline in Q1 2025 revenue is primarily attributed to disruptions in subsidy schedules, with a recovery in sales observed in March 2025 [12]. - The company outperformed the overall industry, with the online retail market for smart toilets in China declining by 18.6% year-on-year [12]. - The revenue growth for 2024 was driven by various product segments, with smart toilets and covers growing by 13.37% year-on-year, while the water tank and accessories segment grew by 2.93% [12]. Profitability Analysis - The gross margin for Q1 2025 is expected to slightly increase to 24.7%, supported by national subsidies, despite a decline in profit margins due to rigid costs [12]. - The net profit margin for Q1 2025 is projected to decrease by 6.0 percentage points year-on-year to 5.2% [12]. Competitive Position - The company maintains a strong competitive position in the industry, with a consistent R&D investment of around 4%, and holds 1,940 patents, including 181 invention patents [12]. - The company is recognized as one of the few sanitary ware enterprises with a "National Industrial Design Center" title, indicating its leading capabilities in product development and manufacturing [12]. Future Outlook - The company is expected to achieve a good revenue growth in 2025, driven by its dual strategy of "own brand + OEM" [12]. - The domestic sales of its own brand are anticipated to grow rapidly, supported by the implementation of national subsidies [12]. - The company forecasts net profits of 200 million yuan, 230 million yuan, and 280 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 14, 12, and 10 [12].