KEHUA HENGSHENG(SZ:002335) Changjiang Securities·2025-05-26 10:00Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 7.757 billion yuan for 2024, a year-on-year decrease of 4.71%, with a net profit attributable to shareholders of 315 million yuan, down 37.90% year-on-year [4][10]. - In Q4 2024, the company achieved a revenue of 2.364 billion yuan, with a net profit of 77 million yuan [4]. - For Q1 2025, the company reported a revenue of 1.216 billion yuan, an increase of 2.73% year-on-year, with a net profit of 69 million yuan, down 6.26% year-on-year [4][10]. Summary by Sections Financial Performance - In 2024, the company's data center revenue was 3.152 billion yuan, up 14.07% year-on-year, while IDC revenue was 1.231 billion yuan, down 4.53% year-on-year due to declining rents [10]. - Product revenue reached 1.921 billion yuan, a year-on-year increase of 30.33%, benefiting from domestic data center capital expenditure expansion and equipment localization [10]. - New energy revenue was 3.608 billion yuan, down 15.98% year-on-year, primarily due to a significant drop in storage product prices [10]. - The gross margin for IDC was 23.32%, down 2.91 percentage points year-on-year, while the gross margin for data center products was 32.25%, down 1.07 percentage points year-on-year [10]. Future Outlook - The company is expected to benefit from the growing demand for data center infrastructure driven by AI applications, with a projected revenue growth of over 50% for data center products in 2025 [10]. - The IDC business is anticipated to grow by 10-20% year-on-year, supported by improved profitability as the product listing rate increases [10]. - The new energy business is expected to continue reducing losses, aided by market expansion and limited price declines for storage products [10]. - Overall, the company aims for a net profit of approximately 700 million yuan in 2025, corresponding to a PE ratio of 28 times [10].