Huarui Precision(SH:688059) Soochow Securities·2025-04-29 11:01Investment Rating - The report maintains an "Accumulate" rating for the company [2][6] Core Views - The company's performance in 2024 met expectations, with Q1 2025 showing a return to growth [2] - The overall performance in 2024 declined mainly due to low manufacturing industry sentiment and weak demand for tools, leading to underutilization of capacity and increased average costs [2][4] - Q1 2025 saw significant growth in net profit, attributed to cost optimization and the end of stock incentive expenses [3] Financial Performance Summary - In 2024, the company achieved total revenue of 759.06 million yuan, a year-on-year decrease of 4.43%, and a net profit attributable to shareholders of 106.96 million yuan, down 32.26% [2] - For Q1 2025, the company reported revenue of 222 million yuan, a year-on-year increase of 30.48%, and a net profit of 29 million yuan, up 70% [3] - The gross profit margin for 2024 was 39.46%, down 6.01 percentage points year-on-year, while Q1 2025's gross profit margin was 35.49%, down 1.75 percentage points [4] - The company’s inventory increased to 397 million yuan by the end of 2024, a rise of 28.77% year-on-year, indicating improved cash flow from operating activities [5] Product and Market Analysis - In 2024, domestic revenue was 700 million yuan, down 5.73% year-on-year, while overseas revenue was 50 million yuan, up 6.73%, indicating successful overseas business progress [2] - The company has accelerated channel expansion and completed key investment projects, enhancing its comprehensive metal cutting service capabilities [6] Earnings Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been adjusted to 157 million yuan and 211 million yuan, respectively, with a projected net profit of 273 million yuan for 2027 [6] - The current stock price corresponds to dynamic P/E ratios of 23, 17, and 13 for 2025, 2026, and 2027, respectively, reflecting the company's expanding product matrix [6]