主营业务持续向好，盈利水平延续改善

Investment Rating - The investment rating for the company is "Accumulate" with a target price based on a PE of 12.7x for 2024, 11.1x for 2025, and 10.3x for 2026 [3][10]. Core Insights - The company's main business continues to perform well, with an improvement in profitability levels. In Q1 2024, the gross margin was 9.99%, up 1.13 percentage points year-on-year, and the net profit margin was 3.46%, up 1.32 percentage points year-on-year [1][6]. - The company is focusing on its core compressor business, which is expected to grow alongside the demand for refrigerators. The decline in revenue is attributed to the reduction in non-core businesses and the exit from the floor cleaning machine business [7][8]. - The company has a strong cash position, with cash and cash equivalents plus trading financial assets amounting to 56.11 billion, a year-on-year increase of 32.17% [8]. Financial Performance - In Q1 2024, the company achieved operating revenue of 33.41 billion, a year-on-year decrease of 21.16%, while the net profit attributable to the parent company was 0.8 billion, an increase of 26.96% year-on-year [6][8]. - The company’s investment income for Q1 2024 was 0.19 billion, a significant increase of 340.53% year-on-year, mainly due to gains from foreign exchange contracts and equity sales [1]. - The company’s financial metrics indicate a decrease in operating costs and an improvement in financial expenses due to increased foreign exchange gains and interest income [1][8]. Future Outlook - The company is expected to see growth in its core compressor business, with commercial and variable frequency segments likely to enhance profitability in the medium to long term. New growth areas such as electric vehicle components are anticipated to contribute positively [3][10]. - Forecasted net profits for the company are 4.4 billion for 2024, 5 billion for 2025, and 5.3 billion for 2026, reflecting a positive growth trajectory [3][10].