WEIXING(SZ:002003) Changjiang Securities·2025-05-20 04:43Investment Rating - The investment rating for the company is "Buy" and it is maintained [8]. Core Views - The company reported Q1 2025 earnings with revenue of 980 million yuan, a year-on-year increase of 22%, and a net profit attributable to shareholders of 100 million yuan, a year-on-year increase of 29%, significantly exceeding expectations [2][6]. - The revenue performance exceeded expectations primarily due to timing differences in order receipt and revenue recognition, with a gross margin increase of 0.9 percentage points to 38.8% [10]. - Despite short-term order pressure, the full-year guidance remains unchanged, with expectations for net profits of 750 million, 850 million, and 950 million yuan for 2025, 2026, and 2027 respectively, representing year-on-year growth of 7%, 13%, and 12% [10]. Summary by Sections Financial Performance - Q1 2025 revenue was 980 million yuan, up 22% year-on-year, and net profit was 100 million yuan, up 29% year-on-year, both significantly above initial expectations [2][6]. - The gross margin improved to 38.8%, driven by an optimized customer and product mix, while the sales expense ratio remained stable at 9.5% and the management expense ratio decreased by 1.6 percentage points to 11.4% [10]. Market Outlook - Domestic demand remains under pressure, and overseas brand orders are cautious due to short-term tariff impacts, leading to expected pressure in Q2 due to high base effects [10]. - The company is one of the few with overseas production capacity, and the trend of expanding customer base and increasing share from existing customers is expected to continue [10]. Earnings Forecast - The company forecasts net profits of 750 million, 850 million, and 950 million yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 18, 16, and 14 times [10].