XJEC(000400) 长江证券·2024-05-20 03:02Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - In Q1 2024, the company reported a revenue of 2.81 billion yuan, a year-on-year decrease of 15.09%, while the net profit attributable to the parent company was 237 million yuan, an increase of 47.39% [4][5] - The decline in revenue is primarily attributed to a decrease in the income from the new energy system integration segment, which has a low gross margin of 5.42% but accounts for 23.1% of total revenue [4] - The overall gross margin improved by 5.06 percentage points year-on-year to 18.27%, with a gross profit of 514 million yuan, reflecting a significant growth of 19% compared to revenue growth [4] - The company achieved a positive operating cash flow of 260 million yuan in Q1 2024, marking one of only two quarters in its history with positive operating cash flow [4] - The company is expected to benefit from the upcoming tenders for ±400kV Qinghai-Tibet DC and ±500kV Saudi flexible DC projects, as well as the anticipated growth in the domestic power distribution business and smart meter demand [4] Summary by Sections Financial Performance - Q1 2024 revenue: 2.81 billion yuan, down 15.09% YoY - Q1 2024 net profit: 237 million yuan, up 47.39% YoY - Q1 2024 gross margin: 18.27%, up 5.06 percentage points YoY - Q1 2024 gross profit: 514 million yuan, up 19% YoY [4] Business Outlook - The company has a strong order backlog for converter valves and has won bids for the ±400kV Qinghai-Tibet DC project - The company is expanding its international presence with accelerated exports of smart meters [5] - Expected net profits for 2024 and 2025 are approximately 1.2 billion yuan and 1.8 billion yuan, respectively, with corresponding PE ratios of 22.5 and 15 times [5]