Qingdao CHOHO Industrial (SZ:003033) NORTHEAST SECURITIES·2025-04-30 02:46Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][5]. Core Views - The company achieved significant growth in Q1 2025, with revenue reaching 395 million yuan, a year-on-year increase of 6.32%. The net profit attributable to shareholders was 54 million yuan, reflecting a remarkable year-on-year growth of 100.09% [1]. - The increase in government subsidies contributed to the substantial profit growth, with 27.03 million yuan recognized in the current period. The company's cash flow from operating activities also improved significantly, turning positive with a year-on-year increase of 109.96% [1]. - The company is focused on deepening its core business in chain transmission, with plans to invest 800 million yuan in a key component industrial park project in Shandong Province, targeting agricultural machinery and high-end equipment [2]. Financial Summary - The company is projected to achieve revenues of 2.16 billion yuan, 2.37 billion yuan, and 2.61 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 177 million yuan, 224 million yuan, and 261 million yuan [3][4]. - The gross profit margin for Q1 2025 was reported at 22.42%, a slight increase of 0.13 percentage points year-on-year, while the expense ratio rose to 15.09%, an increase of 1.91 percentage points [2]. - The company’s earnings per share are expected to grow from 2.16 yuan in 2025 to 3.20 yuan in 2027, with a projected price-to-earnings ratio decreasing from 19.43x in 2025 to 13.14x in 2027 [4][10].