ZHESHANG SECURITIES·2025-05-15 14:26Investment Rating - The investment rating for Zhengmei Machine (601717) is "Accumulate" [4] Core Views - The company achieved a total operating revenue of 37.05 billion yuan in 2024, representing a year-on-year growth of 1.7%. The net profit attributable to shareholders was 3.93 billion yuan, up 20.2%, driven by revenue structure optimization in the coal machinery segment and a decrease in material costs [2][10] - In Q1 2025, the company reported an operating revenue of 9.76 billion yuan, a 0.9% increase year-on-year, and a net profit of 1.09 billion yuan, reflecting a 4.5% year-on-year growth, mainly due to the growth of the automotive parts subsidiary Yaxin Technology and increased shareholding in subsidiaries [2] - The company's profitability showed slight fluctuations, with a decrease in expense ratios and significant cost reduction and efficiency improvement effects [2] Financial Performance Summary - For 2024, the gross profit margin was 24.0%, an increase of 1.9 percentage points year-on-year, while the net profit margin was 11.4%, also up by 1.9 percentage points year-on-year. In Q1 2025, the gross profit margin was 23.5%, down 0.4 percentage points year-on-year, and the net profit margin was 11.5%, down 0.7 percentage points year-on-year [2][3][15] - The company’s expense ratio for 2024 was 10.9%, a decrease of 0.5 percentage points year-on-year, with sales expense ratio at 2.5%, down 0.6 percentage points, and R&D expense ratio at 4.1%, down 0.2 percentage points [3][15] Profit Forecast - The company is expected to achieve operating revenues of 38.2 billion yuan, 40.2 billion yuan, and 43.9 billion yuan for 2025, 2026, and 2027 respectively, with a compound annual growth rate (CAGR) of 7%. The net profit attributable to shareholders is projected to be 4.11 billion yuan, 4.41 billion yuan, and 4.99 billion yuan for the same years, with a CAGR of 10% [4][5]