Yangling Metron New Material (SZ:300861) EBSCN·2025-05-01 09:17Investment Rating - The report has downgraded the investment rating to "Accumulate" due to increased industry competition and continuous pressure on diamond wire prices [3]. Core Views - The company reported a significant decline in revenue and net profit for 2024, with operating income of 2.271 billion yuan, down 49.66% year-on-year, and a net profit attributable to shareholders of 146 million yuan, down 90.84% year-on-year [1]. - In Q1 2025, the company achieved operating income of 423 million yuan, a decrease of 50.61% year-on-year, but managed to turn a profit with a net profit of 26 million yuan, down 86.46% year-on-year [1][2]. - The company plans to invest 230 million yuan in a new tungsten wire mother line project to ensure long-term development, which will increase monthly production capacity to 7 million kilometers [3]. Summary by Sections Financial Performance - In 2024, the company’s diamond wire production was 125 million kilometers, a 15.60% decrease from the previous year, and sales volume was 122 million kilometers, down 5.37% year-on-year [2]. - The average selling price of diamond wire (after tax) fell by 48.78% to 17.67 yuan per kilometer, leading to a 51.53% decrease in revenue to 2.152 billion yuan, with a gross margin drop of 34.71 percentage points to 17.04% [2]. - For 2025-2027, the forecasted net profits are 213 million yuan, 245 million yuan, and 349 million yuan respectively, reflecting a downward adjustment of 62% and 61% for 2025 and 2026 [3][4]. Research and Development - The company maintained a stable R&D investment ratio, with 60 million yuan allocated in 2024, accounting for 2.64% of operating income [3]. Cash Flow and Financial Health - The company has maintained positive operating cash flow since Q3 2023, with cash and cash equivalents of 706 million yuan at the end of Q1 2025 and no debt, indicating a strong financial position [2].