712 Corp.(SH:603712) Changjiang Securities·2025-05-02 01:37Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company's revenue performance has declined due to fluctuations in downstream demand, leading to a reduction in product orders and a corresponding drop in revenue [2][4]. - The company's gross margin for the quarter has significantly improved on a sequential basis, primarily due to changes in revenue structure [2][10]. - The company is focusing on technological innovation to enhance product competitiveness and added value, aiming to transform innovation into a key driver for high-quality development [10]. Financial Performance - In the first quarter, the company achieved operating revenue of 216 million yuan, a year-on-year decrease of 55.88%, and a net profit attributable to the parent company of -54 million yuan, a year-on-year decrease of 440.23% [4]. - The gross margin for Q1 2025 increased by 5.49 percentage points year-on-year to 40.99%, and increased by 18.37 percentage points sequentially [10]. - The company expects to achieve net profits attributable to the parent company of 110 million, 250 million, and 400 million yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 146%, 119%, and 58% [10]. Market Position and Projects - In military communications, the company has successfully won bids for several projects, enhancing its competitive position in tactical communication products [10]. - In civil communications, the company has completed various projects, including third-party testing for heavy-load railway integration and the development of a digital train safety protection system [10].