Lutian Machinery (605259) ZHESHANG SECURITIES·2025-05-13 07:45Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is a leading player in the high-pressure cleaning machine sector, experiencing accelerated growth, while its general machinery business shows steady growth [2] - The company's revenue and profit for 2024 and Q1 2025 exceeded expectations, driven by increased orders in general power machinery and high-pressure cleaning machines [5][6] - The company is expanding its production capacity and entering the energy storage sector, which is expected to become a new growth point [5][6] Financial Performance Summary 1) Revenue & Profit: - 2024 full year revenue reached 2.25 billion, a year-on-year increase of 38.3%, with net profit attributable to shareholders at 190 million, a year-on-year increase of 3.4% [5] - Q4 2024 revenue was 680 million, a year-on-year increase of 72.5%, with net profit of 50 million, a year-on-year increase of 55.9% [5] - Q1 2025 revenue was 640 million, a year-on-year increase of 50.1%, with net profit of 60 million, a year-on-year increase of 56.3% [5] 2) Profitability: - The gross margin for 2024 was 18.1%, down 4.0 percentage points year-on-year, while the net profit margin was 8.3%, down 2.8 percentage points [5] - In Q1 2025, the gross margin improved to 20.0%, up 0.9 percentage points year-on-year, with a net profit margin of 9.0%, up 0.4 percentage points [5] 3) Expense Structure: - The total expense ratio for 2024 was 7.4%, down 0.2 percentage points year-on-year, with R&D expenses increasing due to investments in energy storage product development [5] - In Q1 2025, the total expense ratio was 7.7%, up 0.9 percentage points, primarily due to an increase in financial expenses [5] Business Segmentation - High-pressure cleaning machine business generated 1.09 billion in revenue in 2024, a year-on-year increase of 70.1%, with a gross margin of 20.6% [5] - General machinery revenue was 1 billion in 2024, a year-on-year increase of 14.2%, with a gross margin of 13% [5] - The energy storage segment generated 10 million in revenue in 2024, with a gross margin of 19.2% [5] Earnings Forecast and Valuation - The company is expected to achieve revenues of 2.87 billion, 3.76 billion, and 4.96 billion in 2025, 2026, and 2027, respectively, with corresponding net profits of 247 million, 331 million, and 455 million [6] - The current market valuation corresponds to a PE ratio of 12.4 for 2025, indicating that the company is undervalued compared to industry averages [6]