Lianovation(SH:600363) Huaxin Securities·2025-05-06 12:23Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown a significant improvement in its operational efficiency, with both revenue and profit increasing in Q1 2025 due to effective cost reduction and industrial optimization [5] - The laser business is progressing steadily, with large orders being gradually released, indicating a promising market outlook [6] - The high-temperature superconducting business is successfully transitioning to industrialization, with substantial potential in nuclear fusion applications [7][8] - Revenue forecasts for 2025-2027 are projected at 32.91 billion, 38.01 billion, and 45.04 billion yuan respectively, with corresponding EPS of 1.37, 1.61, and 2.25 yuan, reflecting strong growth potential [9] Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 31.04 billion yuan, a year-on-year decrease of 4.17%, and a net profit of 2.41 billion yuan, down 27.86% [4] - For Q1 2025, the company reported revenue of 8.01 billion yuan, an increase of 11.54% year-on-year, and a net profit of 1.16 billion yuan, up 10.57% [4] Business Development - The company is focusing on optimizing its product and industrial structure, moving away from traditional products that do not contribute to profit, and targeting new products with market potential and technological barriers [5] - The laser business has seen rapid revenue growth due to the release of large orders, and the company has received significant interest in its laser anti-drone equipment from over 70 potential clients [6] High-Temperature Superconducting Business - The company’s subsidiary has successfully completed the first domestic low-temperature experiment based on high-temperature superconducting cables and is in the process of mass delivery of equipment [7] - The company has secured contracts for superconducting coil development and testing services, laying the groundwork for future nuclear fusion projects [8] Earnings Forecast - The company’s revenue is expected to grow at rates of 6.0%, 15.5%, and 18.5% for the years 2025, 2026, and 2027 respectively, with net profit growth rates of 159.3%, 17.3%, and 39.7% [11]