FARATRONIC(SH:600563) Tianfeng Securities·2025-05-16 10:30Investment Rating - The investment rating for the company is upgraded to "Buy" based on expected profit growth and current valuation levels [3][7]. Core Insights - 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 about 15% [2]. - The company has achieved significant growth in net profit for Q1 2025, indicating a trend of profit recovery [2]. - The establishment of a subsidiary in Hungary aims to tap into the overseas new energy market, with projected overseas revenue of 1.005 billion yuan in 2024, reflecting an 8.09% year-on-year increase [2]. Financial Performance Summary - For the full year of 2024, the company is projected to achieve revenue of 4.772 billion yuan, a year-on-year increase of 22.99%, and a net profit of 1.039 billion yuan, a year-on-year increase of 1.48% [1][5]. - In Q1 2025, the company reported revenue of 1.204 billion yuan, a year-on-year increase of 22.78%, and a net profit of 264 million yuan, a year-on-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-on-year, while the net margin is projected at 21.84%, down 4.65 percentage points year-on-year [1][5]. Financial Forecasts - The company’s net profit forecasts for 2025 and 2026 have been adjusted to 1.33 billion yuan and 1.6 billion yuan, respectively, with an expected net profit of 1.91 billion yuan in 2027 [3]. - The projected revenue growth rates for the upcoming years are 22.92% for 2025, 15.40% for 2026, and 16.26% for 2027 [5][11].