2024年一季报点评：业绩符合预期，500kv组合电器步入收获期

Investment Rating - Strong Buy (Maintained) [10][24] Core Views - The company's profitability improved significantly in Q1 2024, with gross margin reaching 35.3%, up 7.8 percentage points year-over-year and 1.5 percentage points quarter-over-quarter [10] - Net profit margin attributable to the parent company was 11.7%, up 2.7 percentage points year-over-year and 9.6 percentage points quarter-over-quarter [10] - Revenue in Q1 2024 increased by 11.6% year-over-year, driven by higher profit margins and a low base in Q1 2023 [10] - The company achieved a major breakthrough in 500kv gas-insulated switchgear (GIS) products, with a significant increase in orders from the State Grid [39] - The company's financial leverage continued to decline, with a debt-to-asset ratio of 28.7% in Q1 2024, down 5.1 percentage points year-over-year and 1.5 percentage points quarter-over-quarter [21] Financial Performance - Revenue in Q1 2024 was RMB 254 million, up 11.6% year-over-year but down 40.8% quarter-over-quarter [24] - Net profit attributable to the parent company in Q1 2024 was RMB 30 million, up 45.7% year-over-year [24] - Adjusted net profit attributable to the parent company in Q1 2024 was RMB 26 million, up 54.73% year-over-year [24] - The company's operating expenses ratio in Q1 2024 was 24.6%, up 4.6 percentage points year-over-year but down 0.9 percentage points quarter-over-quarter [21] Future Outlook - The company is expected to achieve net profits attributable to the parent company of RMB 310 million, RMB 379 million, and RMB 455 million in 2024, 2025, and 2026, respectively [24] - Earnings per share (EPS) are projected to be RMB 0.50, RMB 0.61, and RMB 0.73 in 2024, 2025, and 2026, respectively [24] - The target price is maintained at RMB 9.5, representing a potential upside from the current price of RMB 6.85 [20][24] Market Performance - The company's stock price underperformed the CSI 300 index over the past 12 months, with a decline of 34% compared to the index's decline of 18% [12]