Kunshan Dongwei Technology (SH:688700) EBSCN·2025-04-30 03:43Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming months [5]. Core Views - The company's overall performance in 2024 is under pressure, with a significant decline in revenue and net profit, primarily due to weaker demand in the downstream new energy sector [2][3]. - Despite the challenges, there is optimism regarding the growth potential of PCB plating equipment, supported by a substantial increase in contract liabilities and a recovery in orders [2][3]. Summary by Sections Financial Performance - In 2024, the company achieved revenue of 750 million yuan, a year-on-year decrease of 17.5%, and a net profit attributable to shareholders of 69 million yuan, down 54.3% [1]. - The gross margin for 2024 was 33.0%, a decline of 5.6 percentage points compared to the previous year [1]. - The fourth quarter of 2024 saw a revenue of 170 million yuan, a decrease of 4.5%, with net profit dropping 63.0% [1]. Segment Performance - High-end PCB plating equipment generated revenue of 491 million yuan, an increase of 37.7%, while the gross margin was 34.3%, down 2.1 percentage points [2]. - Hardware surface treatment equipment revenue fell by 18.6% to 127 million yuan, with a gross margin of 16.2%, down 8.5 percentage points [2]. - New energy sector equipment revenue plummeted by 84.8% to 51 million yuan, but the gross margin improved to 48.5%, up 1.9 percentage points [2]. Order and Capacity Outlook - As of December 31, 2024, the company had contract liabilities totaling 368 million yuan, a significant increase of 69.7% year-on-year, indicating a recovery in orders [2]. - Factors contributing to this recovery include changes in end-user demand and the establishment of new production bases in Southeast Asia [2]. Product Development - The company has made progress in various product lines, including the launch of a horizontal TGV plating line for semiconductor packaging and a large-width double-sided transmission coating line for the new energy sector [3]. - The copper plating equipment for photovoltaic applications has entered small-scale production, and the three-in-one horizontal plating equipment has received positive feedback and additional orders [3]. Profit Forecast and Valuation - Due to weak demand in the downstream industry, profit forecasts for 2025 and 2026 have been revised downwards, with expected net profits of 170 million yuan and 230 million yuan, respectively [3]. - The company maintains a strong order backlog, particularly in PCB equipment, which supports the positive growth outlook [3].