Arctech Solar(SH:688408) Minsheng Securities·2025-05-03 10:23Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [5][8]. Core Insights - The company's profitability remains stable, with a gross margin of 18.90% and a net margin of 6.83% in Q1 2025, showing slight fluctuations compared to previous periods [2]. - The company has significantly increased its order backlog, totaling 7.4 billion yuan, which represents a growth of 59.14% compared to the previous year [3]. - The tracking bracket segment is expected to benefit from large-scale project implementations and the marketization of electricity trading, potentially increasing annual power generation revenue by approximately 28.51% [4]. Financial Performance - In Q1 2025, the company reported revenues of 1.559 billion yuan, a year-on-year decrease of 14.09% and a quarter-on-quarter decrease of 48.80%. The net profit attributable to shareholders was 110 million yuan, down 28.46% year-on-year and 46.06% quarter-on-quarter [1]. - The company forecasts revenues of 10.618 billion yuan, 12.200 billion yuan, and 14.001 billion yuan for 2025, 2026, and 2027 respectively, with net profits projected at 816 million yuan, 1.055 billion yuan, and 1.277 billion yuan for the same years [5][7]. Order Backlog - As of the announcement date, the company's order backlog includes 5.2 billion yuan in tracking brackets, accounting for 70.27% of total orders, and 1.9 billion yuan in fixed brackets, making up 25.68% of total orders [3]. Market Outlook - The report highlights that the domestic penetration rate of tracking brackets is expected to increase, positioning the company as a leading player in this segment [4].