donghua test(SZ:300354) Changjiang Securities·2025-05-14 14:15Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a significant increase in performance for 2024, with revenue reaching 502 million, a year-on-year increase of 32.79%, and a net profit attributable to shareholders of 122 million, up 38.90% [6][12]. - The company continues to see stable growth in revenue and performance in Q1 2025, with revenue of 109 million, a year-on-year increase of 4.25%, and a net profit of 29 million, up 5.64% [6][12]. - The gross profit margin has improved consistently, with a gross margin of 66.37% in 2024, an increase of 0.9 percentage points year-on-year, and further rising to 68.66% in Q1 2025 [12][12]. - The company is focusing on domestic substitution of mechanical products and aims to build a platform for high-end scientific research instruments, which is expected to open up growth opportunities [12][12]. Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of 502 million, with a gross profit of 333 million, resulting in a gross margin of 66% [16]. - The net profit for 2024 was 121 million, with an EPS of 0.88 [16]. - For Q1 2025, the company reported revenue of 109 million and a net profit of 29 million, indicating a stable growth trajectory [6][12]. Business Development - The company has seen growth across multiple product lines, including structural mechanics testing systems and electrochemical workstations, with sales revenue increases of 35.79% and 52.26% respectively [12][12]. - The company is enhancing its R&D efforts, with a 49.40% increase in R&D investment in 2024, amounting to 61.37 million, which represents 12.22% of total revenue [12][12]. Market Position - The company has a strong competitive position in the domestic market for high-end scientific research instruments, with plans to expand product categories and applications [12][12]. - The company is expected to achieve net profits of 170 million and 230 million in 2025 and 2026 respectively, with corresponding P/E ratios of 34x and 25x [12][12].