盈利改善，轨交装备增长明显

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown significant revenue growth, with Q1 2024 revenue reaching 3.925 billion, a year-on-year increase of 27.20%, and net profit attributable to shareholders at 568 million, up 30.44% year-on-year [1] - The rail transit equipment business has experienced robust growth, with revenue increasing by 43.74% year-on-year, driven by strong performance across various segments [1] - The company is benefiting from industry recovery and large-scale equipment upgrades, with a notable increase in passenger traffic on railways [1] Financial Performance Summary - For Q1 2024, the company's gross margin was 34.06%, reflecting a year-on-year increase of 1.64 percentage points [1] - The net profit margin improved to 14.71%, with a year-on-year increase of 0.21 percentage points [1] - The company expects to achieve net profits of 3.828 billion, 4.411 billion, and 4.900 billion for the years 2024 to 2026, respectively, with corresponding EPS of 2.71, 3.12, and 3.47 [2][3] Revenue and Profit Forecast - The company forecasts revenue growth rates of 20.88%, 21.85%, 14.05%, and 9.30% for the years 2023 to 2026 [2] - The projected profit growth rates are 21.51%, 23.28%, 15.19%, and 11.09% for the same period [2] Segment Performance - The rail transit equipment segment's revenue for Q1 2024 was 2.017 billion, with significant growth in electrical equipment, engineering machinery, and communication signal systems [1] - Emerging equipment business revenue reached 1.769 billion, with notable growth in power semiconductor devices and electric drive systems for new energy vehicles [1] Market Trends - The report highlights a recovery in railway passenger traffic, with Q1 2024 seeing 1.014 billion passengers, a 28.5% increase year-on-year [1] - The company is positioned to benefit from the ongoing demand for equipment upgrades and maintenance in the rail sector, with a significant number of high-level repairs scheduled for 2024 [1]