ZHENHUA(SZ:000733) China Post Securities·2025-04-30 02:23Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company is experiencing short-term pressure on performance, but forward-looking indicators are positive [4] - In 2024, the company achieved revenue of 5.219 billion yuan, a year-on-year decrease of 33%, and a net profit attributable to shareholders of 970 million yuan, a decrease of 64% [4][5] - For Q1 2025, the company reported revenue of 908 million yuan, down 10% year-on-year, and a net profit of 59 million yuan, down 43% [4][5] - The decline in performance is attributed to demand rhythm impacts, price reductions, and adjustments in equipment procurement schedules [5] - The company's gross profit margin for 2024 was 49.70%, down 9.65 percentage points year-on-year, and for Q1 2025, it was 42.49%, down 5.07 percentage points [6] - The company expects a revenue of 5.7 billion yuan and a total profit of 1.145 billion yuan in 2025, representing a growth of 9% and 3% respectively compared to 2024 [7] - Forecasted net profits for 2025-2027 are 1.141 billion, 1.446 billion, and 1.750 billion yuan, corresponding to PE ratios of 26, 20, and 17 times at the current stock price [7] Company Overview - The latest closing price of the company is 52.70 yuan, with a total market capitalization of 29.2 billion yuan [3] - The company has a total share capital of 554 million shares, with a debt-to-asset ratio of 18.3% and a PE ratio of 30.09 [3]