XJEC(SZ:000400) China Post Securities·2025-05-08 05:59Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative price increase of over 20% compared to the benchmark index within six months [6][13]. Core Insights - The company reported a revenue of 17.09 billion yuan in 2024, a slight increase of 0.2% year-on-year, with a net profit attributable to shareholders of 1.12 billion yuan, reflecting an increase of 11.1% year-on-year [4]. - The revenue structure has improved, with significant growth in the smart distribution system and direct current transmission systems, while the integrated services segment has decreased in proportion [4][5]. - The company is expected to benefit from the ongoing boom in ultra-high voltage construction, with predictions of revenue growth to 18.97 billion yuan in 2025 and 21.08 billion yuan in 2026 [6][9]. Revenue and Profitability - In 2024, the revenue from various segments was as follows: smart distribution systems (4.71 billion yuan), smart meters (3.87 billion yuan), and direct current transmission systems (1.44 billion yuan), with respective year-on-year growth rates of 2.9%, 11.0%, and 101.6% [4]. - The overall gross margin for the company improved to 20.8% in 2024, up by 2.8 percentage points year-on-year, driven by product structure optimization and cost reduction efforts [5][9]. - The forecast for net profit attributable to shareholders is projected to reach 1.41 billion yuan in 2025, with a growth rate of 26.4% [9][12]. Financial Metrics - The company’s PE ratio is expected to decrease from 19.39 in 2024 to 15.34 in 2025, indicating an improving valuation as earnings grow [9][12]. - The asset-liability ratio is projected to decline from 51.0% in 2024 to 48.0% in 2025, suggesting improved financial stability [12]. - The forecasted EPS is expected to rise from 1.10 yuan in 2024 to 1.39 yuan in 2025, reflecting the anticipated growth in profitability [9][12].