Grace(SH:603256) Tianfeng Securities·2025-05-03 09:12Investment Rating - The report maintains an "Accumulate" rating for the company [6] Core Views - The company has shown a strong performance turnaround, with Q1 2025 profits exceeding the total profits of the previous year, achieving a revenue of 2.46 billion yuan, a year-on-year increase of 29.52% [1][2] - The electronic fabric business has experienced high growth, with a revenue increase of 25% to 780 million yuan in 2024, driven by sales growth and favorable policies [2] - The company is positioned for high-end product development, particularly in LowDK/CTE fields, which is expected to enhance profitability as production capacity increases [2][4] Financial Performance - In 2024, the company achieved a total revenue of 835 million yuan, a year-on-year increase of 26.24%, with a net profit of 23 million yuan, marking a significant recovery from previous losses [1][5] - The gross profit margin improved significantly, reaching 20% in Q4 2024 and 28% in Q1 2025, with net profit margins turning positive in the last two quarters [3] - The company forecasts net profits of 150 million yuan and 230 million yuan for 2025 and 2026, respectively, indicating a positive growth trajectory [4][5] Market Position and Strategy - The company is leveraging its leading manufacturing capabilities in high-end electronic fabrics to accelerate domestic substitution in the market [4] - The strategic focus on high-value-added products is expected to drive further improvements in profitability and market share [3][4]