Libert(SH:605167) Tianfeng Securities·2025-05-01 14:23Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Views - The company's overall profitability remains robust, with a slight growth in non-recurring profit in Q1, driven by a decrease in expense ratio. The long-term development prospects are viewed positively [1]. - Revenue from modular design and manufacturing is rapidly increasing, contributing to further improvements in gross margin. The company expects significant growth in both domestic and international sales [2]. - The company has issued convertible bonds to fund a large industrial module project, which is anticipated to enhance manufacturing capabilities and efficiency [4]. Summary by Sections Financial Performance - In Q1, the company achieved revenue of 668 million, a year-on-year increase of 1.45%, with a net profit attributable to the parent company of 36 million, down 8.07%. The non-recurring net profit was 33 million, up 5.71% [1]. - For 2024, projected revenue is 3.493 billion, a year-on-year increase of 7.72%, with a net profit of 240 million, up 26.45% [1][5]. - The company’s gross margin for 2024 is expected to be 16.1%, an increase of 1.55 percentage points year-on-year [2]. Cost and Cash Flow - The expense ratio for 2024 is projected at 7.18%, an increase of 0.89 percentage points year-on-year. The net profit margin is expected to be 6.89% [3]. - The company’s cash flow from operations (CFO) for 2024 is projected at 415 million, an increase of 64 million year-on-year, indicating a strong cash flow situation [3]. Market and Project Developments - The company is focusing on expanding its capabilities in the nuclear power module sector, with a total investment of 1.29 billion for the new manufacturing project [4]. - The company has secured a contract for a module construction project worth 226 million, showcasing its competitive advantage in the modular manufacturing and engineering services sector [4].