FARATRONIC(SH:600563) Tianfeng Securities·2025-05-16 08:44Investment Rating - The investment rating for the company is upgraded to "Buy" based on expected profit growth and current valuation levels [3][7]. Core Views - The company is experiencing growth driven by the new energy sector, with a focus on expanding into overseas markets and downstream applications [2]. - In 2024, the revenue from new energy vehicle products is expected to account for approximately 55% of total revenue, with solar energy (including storage) contributing about 23% and industrial control around 15% [2]. - The company has achieved significant growth in net profit for Q1 2025, indicating a trend of profit recovery [2]. Financial Performance Summary - For the full year of 2024, the company is projected to achieve revenue of 4.772 billion yuan, a year-over-year increase of 22.99%, and a net profit of 1.039 billion yuan, reflecting a year-over-year increase of 1.48% [1][5]. - In Q1 2025, the company reported revenue of 1.204 billion yuan, a year-over-year increase of 22.78%, and a net profit of 264 million yuan, a year-over-year increase of 22.61% [1][5]. - The gross margin for 2024 is expected to decrease to 33.37%, down 5.18 percentage points year-over-year, while the net margin is projected at 21.84%, down 4.65 percentage points year-over-year [1][5]. Future Projections - The company’s net profit is forecasted to reach 1.33 billion yuan in 2025 and 1.6 billion yuan in 2026, with a further increase to 1.91 billion yuan by 2027 [3][5]. - The expected growth rates for revenue and net profit in the coming years are 22.92% and 27.66% for 2025, and 15.40% and 20.63% for 2026, respectively [5][11]. Market Expansion - The company is actively expanding its presence in the overseas new energy market, with plans to establish a subsidiary in Hungary in 2024, targeting an overseas revenue of 1.005 billion yuan, which represents an 8.09% year-over-year growth [2].