CCA(SH:603100) China Post Securities·2025-05-19 03:48Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Views - The company achieved a revenue of 7.592 billion yuan in 2024, a year-on-year increase of 2.44%, and a net profit attributable to shareholders of 778 million yuan, up 4.60% year-on-year [3][4]. - The company is benefiting from the trend of domestic substitution, particularly in the industrial automation instruments and composite materials sectors, which have shown steady growth [4][5]. - The company is focusing on expanding its market presence and increasing domestic substitution efforts, with significant orders from major clients like the "Three Barrels of Oil" increasing by 30% year-on-year [5][6]. Financial Performance - The company reported a gross margin of 33.09% in 2024, a decrease of 0.93 percentage points year-on-year, attributed to changes in product mix and rising raw material costs [4]. - The company’s operating revenue is projected to grow to 8.193 billion yuan in 2025, with a year-on-year growth rate of 7.92% [10][11]. - The net profit attributable to shareholders is expected to reach 855 million yuan in 2025, reflecting a growth rate of 9.89% [10][11]. Product Performance - Revenue from industrial automation instruments and devices reached 6.750 billion yuan in 2024, with a year-on-year growth of 2.3% [4]. - The company has successfully replaced imports with several high-end products in the oil and gas sector, including PDS high-frequency ball valves and high-pressure oxygen control valves [5][6]. Market Expansion - The company is actively exploring overseas markets, particularly in Southeast Asia and the Middle East, achieving a 50% year-on-year increase in new orders amounting to 700 million yuan [5][6].