DAAE(600178) China Securities·2025-05-22 04:20Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [4][9]. Core Views - The company is expected to experience an upward turning point due to a significant increase in new projects, with a target of 60,000 complete units sold and revenue of 5.2 billion yuan in 2025 [9]. - The company has launched 75 new projects in 2024, a year-on-year increase of 86%, with a projected lifecycle sales volume of 5.1 million units, including a 280% increase in new energy projects [9][10]. - The company aims to improve its profitability, with expected net profits of 0.18 billion yuan and 0.86 billion yuan for 2025 and 2026, respectively [9]. Summary by Sections Financial Performance - In Q1 2025, the company reported revenues of 0.994 billion yuan, a decrease of 3.31% year-on-year, but achieved a net profit of 3.73 million yuan, marking a return to profitability [1][2]. - For the full year 2024, the company generated total revenue of 4.618 billion yuan, down 14.55% year-on-year, while net profit increased by 41.39% to 0.06 billion yuan [2][3]. Business Segments - The engine business saw a revenue decline of 19.38% in 2024, with a total of 3.265 billion yuan, while the transmission and other businesses reported a slight revenue decrease of 0.59% [7][10]. - The company has maintained a strong market position in commercial vehicle engines and has expanded its product offerings to include high-end passenger vehicle engines and new energy solutions [9][10]. Market Outlook - The report highlights the increasing penetration of hybrid and extended-range vehicles in the domestic market, which is expected to drive future growth [9]. - The company has made significant strides in overseas market development, achieving its best results in history with new customer acquisitions and project launches [8][9].