Jia Yuan Technology(SH:688388) HTSC·2025-04-30 02:00Investment Rating - The report maintains a rating of "Buy" for the company [7] Core Views - The company experienced significant revenue growth in 2024, achieving 6.522 billion RMB, a year-on-year increase of 31.27%, but reported a net loss of 239 million RMB [1][2] - In Q1 2025, the company showed a strong recovery with revenue of 1.981 billion RMB, a year-on-year increase of 113% [1][2] - The company is focusing on its core business while actively seeking diversification, particularly in high-performance copper wire and renewable energy sectors [3] Summary by Sections Financial Performance - The company's gross profit margin for 2024 was 2.01%, down 3.82 percentage points year-on-year, but improved significantly in Q1 2025 with a gross margin of 4.65% [2] - The net profit margin for Q1 2025 was 1.15%, reflecting a year-on-year increase of 6.33 percentage points [2] - The company’s operating expenses decreased slightly in 2024, with a total expense ratio of 4.7% [2] Business Strategy - The company is enhancing its production capacity in advanced copper foil, reaching an annual capacity of over 110,000 tons, positioning itself as an industry leader [3] - It is also expanding into new business areas, including high-purity copper technologies and renewable energy projects, such as solar and wind energy [3] Earnings Forecast and Valuation - The company’s earnings per share (EPS) for 2025 is projected at 0.27 RMB, with subsequent years expected to rise to 0.61 RMB in 2026 and 0.96 RMB in 2027 [4] - The target price for the company is set at 21.04 RMB, based on a price-to-book (PB) ratio of 1.28 for 2025 [4][8]