Azure(SZ:002245) Huachuang Securities·2025-05-08 05:45Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 16.59 CNY [1][7]. Core Insights - The company reported a significant increase in Q1 2025 performance, with revenue reaching 1.728 billion CNY, a year-on-year growth of 20.9%. The net profit attributable to shareholders was 142 million CNY, up 100.6%, and the net profit after deducting non-recurring items was 148 million CNY, reflecting a growth of 204.5% [1][7]. - The report highlights the improvement in the company's financial metrics, including a gross margin of 20.41%, which is an increase of 6.14 percentage points year-on-year, and a net profit margin of 9.15%, up 3.34 percentage points year-on-year [7]. - The company is expanding its product lines and application scenarios, particularly in BBU, AI robotics, eVTOL, and biomedical fields, which are expected to drive future growth [7]. - The BBU segment is anticipated to become a new growth driver due to the increasing demand for reliable power supplies in data centers, with the company developing a 21700 full-tab BBU lithium battery [7]. - The LED business is also expanding into the AI/XR field, with ongoing development of Micro LED products that can be applied in AI glasses, AR/VR devices, and automotive displays [7]. Financial Projections - The company’s total revenue is projected to grow from 6.756 billion CNY in 2024 to 10.370 billion CNY by 2027, with year-on-year growth rates of 29.4%, 20.4%, 12.7%, and 13.1% respectively [3][8]. - The net profit attributable to shareholders is expected to increase from 488 million CNY in 2024 to 1.007 billion CNY in 2027, with growth rates of 246.4%, 39.9%, 24.8%, and 18.2% respectively [3][8]. - The earnings per share (EPS) is forecasted to rise from 0.42 CNY in 2024 to 0.87 CNY in 2027 [3][8].