CHINT ELECTRICS(SH:601877) Changjiang Securities·2025-05-08 09:45Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a 2024 annual revenue of 64.52 billion yuan, an increase of 12.7% year-on-year; net profit attributable to shareholders was 3.87 billion yuan, up 5.1% year-on-year; and non-recurring net profit was 3.68 billion yuan, down 3.9% year-on-year [3][6]. - In Q4 2024, the company achieved a revenue of 18.11 billion yuan, a year-on-year increase of 23.8% and a quarter-on-quarter increase of 4.0%; however, net profit attributable to shareholders dropped to 380 million yuan, down 45.8% year-on-year and 76.1% quarter-on-quarter [3][6]. - For Q1 2025, the company reported a revenue of 14.56 billion yuan, a decrease of 8.5% year-on-year, while net profit attributable to shareholders was 1.16 billion yuan, an increase of 7.7% year-on-year [3][6]. Revenue Breakdown - The company's 2024 revenue from the photovoltaic business was 42.99 billion yuan, up 19.97% year-on-year; low-voltage electrical revenue was 20.92 billion yuan, up 3.9% year-on-year [8]. - The overseas revenue for 2024 was 10.05 billion yuan, an increase of 21.5% year-on-year [8]. - The revenue from photovoltaic power station engineering contracting was 30.84 billion yuan, up 13.0% year-on-year; operating income from power stations was 7.88 billion yuan, up 30.8% year-on-year [8]. Profitability Metrics - The overall gross margin for 2024 was 23.50%, an increase of 1.64 percentage points year-on-year; the gross margin for Q4 2024 was 18.62%, a decrease of 0.32 percentage points year-on-year [8]. - The gross margin for the photovoltaic business in 2024 was 20.26%, up 1.99 percentage points year-on-year; for low-voltage electrical, it was 29.99%, up 1.97 percentage points year-on-year [8]. Expense Analysis - The total expense ratio for 2024 was 12.61%, an increase of 1.14 percentage points year-on-year; the sales expense ratio was 4.10%, up 0.18 percentage points year-on-year [8]. - In Q1 2025, the total expense ratio rose to 13.36%, an increase of 1.99 percentage points year-on-year [8]. Cash Flow and Balance Sheet - The operating net cash flow for 2024 was 15.202 billion yuan, an increase of 267.2% year-on-year; for Q1 2025, it was 2.418 billion yuan, turning positive year-on-year [8]. - As of the end of Q1 2025, inventory was 48.963 billion yuan, up 35.1% year-on-year; contract liabilities were 5.204 billion yuan, up 65.9% year-on-year [8].