Azure(SZ:002245) Huachuang Securities·2025-05-08 07:25Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 16.59 yuan [1][7]. Core Insights - The company reported a significant increase in Q1 2025 performance, with revenue reaching 1.728 billion yuan, a year-on-year growth of 20.9%. The net profit attributable to shareholders was 142 million yuan, up 100.6%, and the net profit after deducting non-recurring items was 148 million yuan, reflecting a growth of 204.5% [1]. - The report highlights the improvement in the company's financial metrics, including a gross margin of 20.41%, up 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 all-tab BBU lithium battery [7]. - The company's LED business is also expanding into the AI/XR field, with ongoing development of Micro LED products for applications in AI glasses, AR/VR devices, and commercial displays [7]. - The report adjusts the company's net profit forecasts for 2025-2027 to 682 million, 852 million, and 1.007 billion yuan, respectively, reflecting a significant improvement in performance [7]. Financial Summary - The total revenue for 2024 is projected at 6.756 billion yuan, with a year-on-year growth rate of 29.4%. For 2025, the revenue is expected to reach 8.136 billion yuan, with a growth rate of 20.4% [3]. - The net profit attributable to shareholders is forecasted to be 488 million yuan in 2024, increasing to 682 million yuan in 2025, representing a growth rate of 246.4% and 39.9%, respectively [3]. - The earnings per share (EPS) is projected to rise from 0.42 yuan in 2024 to 0.59 yuan in 2025 [3].