Xianheng International(SH:605056) Shanxi Securities·2025-05-22 08:23Investment Rating - The report maintains an "Accumulate-A" investment rating for the company [1][14]. Core Views - The company has demonstrated strong revenue and profit growth, with a 2024 revenue of 3.606 billion yuan, up 23.15% year-on-year, and a net profit of 223 million yuan, up 130.67% year-on-year [5][6]. - The company is actively expanding into new sectors such as oil and gas, power generation, and e-commerce, which are expected to contribute to future growth [8][13]. - Digital transformation initiatives are enhancing management efficiency, with the implementation of the "Digital Xianheng 2.0" project [7][12]. Financial Performance - In 2024, the company achieved a gross margin of 29.65% and a net margin of 6.65%, with a notable increase in net margin compared to the previous year [7]. - For Q1 2025, the company reported a revenue of 640 million yuan, a 46.04% increase year-on-year, and a net profit of 21.57 million yuan, up 144.43% year-on-year [5][6]. - The company expects continued revenue growth, projecting net profits of 276 million yuan, 358 million yuan, and 461 million yuan for 2025, 2026, and 2027, respectively [14]. Market Position and Strategy - The company is positioned in the MRO (Maintenance, Repair, and Operations) market, which is transitioning towards centralized procurement, providing a favorable growth environment [13]. - The company has strengthened its market presence in the power grid sector while successfully entering new strategic industries [8][13]. - The company is enhancing its international brand recognition through participation in international exhibitions and expanding online channels [8]. Future Outlook - The company is expected to maintain a strong growth trajectory, with anticipated revenue growth rates of 23.1% for 2025 and 21.6% for 2026 [16]. - The report forecasts an improvement in gross margins as the company continues to optimize its operations and expand its product offerings [13][14].