Henan Thinker Automatic Equipment (SH:603508) Huachuang Securities·2025-05-05 11:14Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Insights - The company achieved a revenue of 1.515 billion yuan in 2024, representing a year-on-year growth of 28.38%, and a net profit attributable to shareholders of 548 million yuan, up 33.08% year-on-year [2][4]. - For Q1 2025, the company reported a revenue of 319 million yuan, a 6.72% increase year-on-year, and a net profit of 127 million yuan, reflecting a 26.40% growth [2]. - The company is committed to an innovation-driven development strategy, increasing R&D investment by 10% to 153 million yuan in 2024, and has strengthened its technology capabilities through partnerships and new product development [2][8]. Financial Performance Summary - In 2024, the company's total revenue was 1.515 billion yuan, with a gross margin of 66.76%, an increase of 3.67 percentage points year-on-year [4][8]. - The projected revenues for 2025, 2026, and 2027 are 1.831 billion yuan, 2.185 billion yuan, and 2.567 billion yuan, respectively, with year-on-year growth rates of 20.8%, 19.3%, and 17.4% [4][8]. - The net profit attributable to shareholders is expected to reach 669 million yuan in 2025, 798 million yuan in 2026, and 936 million yuan in 2027, with growth rates of 22.1%, 19.2%, and 17.4% respectively [4][8]. Market Position and Competitive Advantage - The company is recognized as a leader in the domestic LKJ train control sector, benefiting from a favorable policy environment for large-scale equipment upgrades [2][8]. - The revenue from the high-speed rail monitoring system grew by 39.79% to 358 million yuan in 2024, while the train control system and railway safety protection system also showed significant growth [2][8]. Valuation and Price Target - The target price for the company's stock is set at 35.2 yuan, based on a projected P/E ratio of 20x for 2025, compared to the current price of 25.75 yuan [4][8].