Changgao NEET(SZ:002452) Huachuang Securities·2025-05-06 08:04Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 10.35 CNY [1][7]. Core Insights - The company reported a revenue of 1.76 billion CNY for 2024, representing a year-on-year increase of 17.9%, and a net profit attributable to shareholders of 252 million CNY, up 45.7% year-on-year [1][3]. - In Q1 2025, the company achieved a revenue of 339 million CNY, reflecting a 33.6% year-on-year growth, with a net profit of 33 million CNY, a 12.5% increase year-on-year [1][3]. - The company’s gross margin for Q4 2024 was 44.1%, an increase of 10.3 percentage points year-on-year, while the overall gross margin for 2024 was 38.9%, up 4.0 percentage points year-on-year [7]. Financial Performance Summary - The company’s total revenue is projected to grow from 1.76 billion CNY in 2024 to 2.75 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 15.7% [3][8]. - Net profit is expected to rise from 252 million CNY in 2024 to 491 million CNY in 2027, with a CAGR of about 16.2% [3][8]. - Earnings per share (EPS) are forecasted to increase from 0.41 CNY in 2024 to 0.79 CNY in 2027 [3][8]. Business Segment Analysis - The company’s core subsidiaries, including Changgao High Voltage Switch and Changgao Electric, reported significant revenue growth, with the high voltage switch segment growing by 30% [7]. - The company successfully expanded its product offerings, including the 500kV GIS products, with new orders totaling 204 million CNY in 2024 and expected deliveries of 150 million CNY in 2025 [7]. Investment Outlook - The company has a clear growth trajectory, supported by its established market position in electrical equipment and ongoing product development [7]. - The forecast for net profit in 2025 and 2026 is adjusted to 360 million CNY and 420 million CNY, respectively, reflecting the increased investment in new product development [7].