ZHEFU(SZ:002266) HTSC·2025-05-06 03:39Investment Rating - The report maintains a "Buy" rating for the company with a target price of 3.92 RMB [6][7]. Core Insights - The company reported a revenue of 20.91 billion RMB in 2024, a year-on-year increase of 10.35%, while the net profit attributable to shareholders was 971 million RMB, down 5.28% year-on-year [1][2]. - The company has a strong order intake in the clean energy equipment sector, with new orders totaling 2.55 billion RMB in 2024, indicating potential revenue growth in the future [3]. - The overall gross margin for 2024 was 12.04%, a decrease of 0.97 percentage points year-on-year, primarily due to increased competition in hazardous waste disposal [2]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 4.94 billion RMB, up 10.86% year-on-year, but the net profit was 271 million RMB, down 12.88% year-on-year, slightly below expectations due to unexpected asset impairment losses [1][3]. - The company’s clean energy equipment gross margin improved by 0.39 percentage points to 40.12% in 2024 [2]. Order Intake and Future Prospects - The company signed new orders worth 2.1 billion RMB for hydropower equipment and 420 million RMB for nuclear power equipment in 2024, contributing to the total new clean energy equipment orders of 2.55 billion RMB [3]. - The financial expenses for 2024 were 93 million RMB, a decrease of 36.54% year-on-year, indicating effective cost control [3]. Valuation and Estimates - The report adjusts the 2025-2026 nuclear power revenue estimates down by 32% and 42%, respectively, leading to a reduction in net profit estimates for the same period by 12% and 15% to 1.08 billion RMB and 1.13 billion RMB [4]. - The target price of 3.92 RMB is based on a projected PE ratio of 19x for 2025, reflecting the anticipated growth in the clean energy equipment sector [4].