华荣股份：一季度利润高增，布局防爆机器人-20250430

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company reported a significant year-on-year improvement in Q1 2025 performance, with revenue of 798 million RMB, up 23.99% year-on-year, and a net profit attributable to shareholders of 116 million RMB, up 36.58% year-on-year [1] - The company is actively expanding into emerging fields and overseas markets, which is expected to sustain profit growth in 2025 [1] - The company has established itself as a leader in the domestic explosion-proof electrical equipment sector, leveraging technological advantages and certifications to create high barriers to entry [3] - The company is strategically positioning itself in the explosion-proof robotics sector, collaborating with Tianchuang Robotics to develop advanced products [4] - The company’s profit forecast for 2025-2027 shows a net profit of 525.25 million RMB in 2025, with a year-on-year growth rate of 14% [5] Summary by Sections Financial Performance - In Q1 2025, the company's gross margin was 49.36%, showing a year-on-year decrease of 3.86 percentage points but an improvement of 8.19 percentage points quarter-on-quarter [2] - The total expense ratio for the quarter was 34.91%, down 4.19 percentage points year-on-year, indicating effective cost control [2] Market Position and Strategy - The company has diversified its revenue sources, with emerging fields such as food, medicine, and military industries accounting for 20% of its revenue, and overseas business contributing nearly 24% of total revenue [3] - The company is expected to benefit from the increasing demand for intelligent solutions in industrial safety as it continues to expand its international presence [5] Growth Prospects - The company is projected to achieve a net profit of 613.39 million RMB in 2026 and 775.87 million RMB in 2027, reflecting a compound annual growth rate of 26.49% from 2025 to 2027 [19] - The target price for the company's stock is set at 29.64 RMB, based on a price-to-earnings ratio of 19 times for 2025 [5]