GONGNIU(SH:603195) Huachuang Securities·2025-05-07 08:59Investment 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 [4][19]. Core Insights - The company reported a revenue of 16.831 billion yuan for 2024, a year-on-year increase of 7.24%, and a net profit attributable to shareholders of 4.272 billion yuan, up 10.39% year-on-year. For Q1 2025, revenue was 3.922 billion yuan, reflecting a 3.14% year-on-year growth, with a net profit of 975 million yuan, up 4.91% year-on-year [1][3]. Financial Performance Summary - 2024 Financials: Total revenue reached 16.831 billion yuan, with a net profit of 4.272 billion yuan. The gross margin was stable at 43.2% [3][8]. - 2025 Projections: Expected revenue growth of 7.5% to 18.089 billion yuan and net profit growth of 7.0% to 4.569 billion yuan [3]. - Earnings Per Share (EPS): Projected EPS for 2025 is 3.54 yuan, increasing to 4.09 yuan by 2027 [3][8]. - Valuation Metrics: The company is expected to trade at a price-to-earnings (P/E) ratio of 20 in 2025, decreasing to 18 by 2027 [3][8]. Business Segment Performance - Core Business Growth: The main business segments, electrical connections and smart electrical lighting, achieved revenues of 7.68 billion yuan and 8.33 billion yuan respectively in 2024, with year-on-year growth of 4% and 5% [8]. - Emerging Business Growth: The renewable energy segment saw significant growth, with revenues of 777 million yuan in 2024, a remarkable increase of 104.75% year-on-year [8]. Strategic Initiatives - The company is committed to three strategic areas: smart ecosystems, renewable energy, and internationalization. It aims to enhance its market presence in Southeast Asia and Europe [8]. - A talent stock ownership and stock incentive plan has been introduced, with performance targets aligned with revenue and net profit growth [8]. Dividend Policy - The company plans to distribute a cash dividend of 2.4 yuan per share and a capital reserve conversion of 0.4 shares per share, totaling 31 billion yuan, which represents 72.6% of the net profit for 2024 [8].