NANCAL(SH:603859)2024-04-24 03:02Investment Rating - The report maintains a "Buy" rating for the company, projecting revenue growth and profitability improvements in the coming years [16]. Core Insights - The overall gross margin for Q1 2024 is reported at 51.38%, an increase of 5.8 percentage points year-on-year, primarily due to a higher proportion of industrial electrical products [2]. - The company signed a sales contract worth 124 million yuan for an AI large model project, which is expected to contribute significantly to its growth strategy [2]. - The company is a key partner in Huawei's intelligent manufacturing solutions, participating in strategic projects that enhance its software and hardware capabilities [2]. Financial Summary - The company achieved total revenue of 404 million yuan in Q1 2024, representing a year-on-year growth of 30.4% [20]. - The net profit attributable to the parent company for Q1 2024 was 55.72 million yuan, also reflecting a year-on-year increase of 30.2% [20]. - Revenue projections for 2024, 2025, and 2026 are 1.83 billion yuan, 2.32 billion yuan, and 2.94 billion yuan respectively, with net profits expected to reach 320 million yuan, 393 million yuan, and 489 million yuan [16][17].