CSICPCL(SH:600482) Changjiang Securities·2025-05-08 09:46Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company has shown continuous high growth in its performance for 2024 and Q1 2025, driven by the buoyancy in the shipbuilding industry, with increasing orders for diesel engines and robust production and sales of low-speed engines. The company's profitability has improved due to cost reduction and efficiency enhancement measures. The proportion of high-quality orders in new contracts has increased, indicating a positive trend in sales structure optimization and profitability potential [2][4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 51.697 billion yuan, a year-on-year increase of 14.62%, and a net profit attributable to shareholders of 1.391 billion yuan, up 78.43%. In Q1 2025, the revenue was 12.311 billion yuan, a 7.98% increase year-on-year, with a net profit of 396 million yuan, surging 348.96% [4][9]. Business Segments - The core subsidiary, China Shipbuilding Diesel Engine, reported a revenue of 23.746 billion yuan and an operating profit of 2.3 billion yuan, with a net profit attributable to shareholders of 1.054 billion yuan, reflecting a year-on-year growth of approximately 397%. The company has optimized its order-taking strategy, leading to an increase in high-quality orders and a rise in low-speed engine order prices [9][10]. Growth Drivers - The company is expanding its presence in deep-sea and data center backup power sectors, which are expected to provide new growth momentum. The revenue from data center backup power increased by 22% year-on-year, with new orders rising by 44%. The company has also secured significant contracts in the deep-sea sector, indicating a strong market position [9][10]. Future Outlook - The company is expected to achieve net profits of 2.45 billion yuan and 3.2 billion yuan in 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 19 times and 15 times. The long-term outlook remains positive, with anticipated benefits from advancements in AI and robotics [9][10].