Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [3][7]. Core Views - The company is positioned to benefit from accelerated domestic substitution and has diversified its business across multiple fields, enhancing its growth trajectory [1][6]. - The company has established a strong presence in the scroll compressor market, with significant advancements in product structure and market share [6][16]. Financial Data and Profit Forecast - Total revenue is projected to grow from 597 million yuan in 2024 to 898 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 15.4% [2]. - Net profit attributable to shareholders is expected to increase from 74 million yuan in 2024 to 113 million yuan in 2027, reflecting a CAGR of 13.7% [2]. - Earnings per share are forecasted to rise from 1.27 yuan in 2024 to 1.94 yuan in 2027 [2]. Business Segments and Market Position - The company has a diversified product portfolio covering four main application areas: heat pumps, commercial air conditioning, refrigeration, and electric vehicle scroll compressors [6][16]. - The heat pump segment remains the company's core business, with significant market share growth, particularly in the domestic market [6][16]. - The commercial air conditioning segment has seen rapid revenue growth, surpassing the heat pump segment to become the largest revenue contributor by 2024 [25][32]. - The refrigeration segment has also expanded, with notable contributions from international markets, particularly in Brazil and Russia [25][26]. Competitive Advantages - The company has established a competitive edge through its cost-performance ratio, leading to increased market share in the domestic scroll compressor market [6][16]. - The company has successfully penetrated international markets, with overseas sales rising from 18% of total revenue in 2020 to 30% in 2022 [6][16]. - The company has developed strong relationships with major clients, including Gree Electric and Embraco Slovakia, enhancing its market presence [32][34]. Profitability and Cost Structure - The company's gross margin is projected to improve from 25.6% in 2024 to 27.1% in 2027, driven by product structure optimization and increased sales of high-margin products [2][38]. - The net profit margin is expected to stabilize around 12.43% by 2024, despite fluctuations in raw material costs [38]. Management and Governance - The company's management team is experienced, with many members having backgrounds in leading international firms, which supports strategic development and operational efficiency [40].
英华特（301272）：国产替代加速，多领域布局拓展成长曲线