Xianhe(SH:603733) Xinda Securities·2025-05-04 09:28Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of 10.274 billion yuan in 2024, a year-on-year increase of 20.1%, and a net profit attributable to shareholders of 1.004 billion yuan, up 51.2% year-on-year [1] - The company is experiencing a recovery in profitability, with production and sales benefiting from projects in Guangxi and Hubei, and a successful expansion into overseas markets [2] - The company’s production capacity is expected to grow significantly, with the completion of projects in Guangxi and Hubei contributing to an estimated 30%-40% year-on-year increase in production in 2025 [3] Financial Performance Summary - In Q1 2025, the company achieved a revenue of 2.991 billion yuan, a year-on-year increase of 35.4%, while the net profit attributable to shareholders was 236 million yuan, down 12.1% year-on-year [1][4] - The gross margin for Q1 2025 was 14.6%, a decrease of 3.4 percentage points year-on-year, while the net profit margin was 7.9%, down 4.3 percentage points year-on-year [3] - The company’s operating cash flow for Q1 2025 was -196 million yuan, an increase of 218 million yuan year-on-year [4] Future Projections - The company’s net profit is projected to reach 1.351 billion yuan in 2025, with corresponding P/E ratios of 11.0X, 8.7X, and 7.4X for the years 2025, 2026, and 2027 respectively [4][5] - The company is expected to maintain a strong growth trajectory, with total revenue projected to reach 20.29 billion yuan by 2027, reflecting a compound annual growth rate of 19.8% [5]