ZONGSHEN POWER(SZ:001696) 车中旭霞·2025-05-11 10:44Core Viewpoint - Zongshen Power (001696.SZ) is a leading domestic small and medium-sized power machinery enterprise actively expanding into the low-altitude economy, achieving significant growth in revenue and net profit in Q1 2025 [3][4][9]. Financial Performance - In Q1 2025, the company achieved revenue of 3.243 billion yuan, a year-on-year increase of 39.11% and a quarter-on-quarter increase of 4.54% [4][9]. - The net profit for Q1 2025 was 226 million yuan, representing a year-on-year growth of 88.28% and a quarter-on-quarter growth of 222.53% [4][9]. - The net profit margin improved by 1.6 percentage points year-on-year, with a net profit margin of 7.16% [5][11]. Business Segments Traditional Business - The company focuses on its core businesses of motorcycle engines and general power machinery, enhancing market share through innovation and technology upgrades [8][20]. - Zongshen Power is consolidating its leading position in the industry by expanding into emerging markets and adjusting product structures [8][20]. Emerging Fields - The company is increasing R&D investment in three emerging areas: aviation power, new energy, and high-end components, aiming to create new growth points [8][20]. - Zongshen Aviation has developed a product line centered on small and medium-sized aviation piston engines, with five foundational product platforms and over 20 derivative products [8][35][47]. Low-Altitude Economy - Zongshen Aviation is actively exploring market applications in the low-altitude economy, enhancing product diversification through an engine + drone application model [8][35][47]. - The company is accelerating the airworthiness certification process and developing hybrid aviation engine products to support widespread application in the low-altitude economy [8][35][47]. General Power Machinery - Zongshen's subsidiaries are leading in the general power machinery sector, achieving significant sales growth and expanding their product matrix [27][29]. - In 2024, the total sales of general power and terminal products reached 4.8345 million units, a year-on-year increase of 37.34% [27]. Motorcycle Engine Business - Zongshen Engine, a subsidiary, remains a leader in the motorcycle engine market, with sales of 2.9852 million units in 2024, a year-on-year increase of 18.44% [30][31]. - The company is focusing on product structure upgrades and expanding its global market presence [30][31]. New Energy Business - The company has established a dual-driven strategy for new energy, covering electric drive systems, energy storage, and hydrogen energy [36][40]. - Zongshen is enhancing its electric drive system offerings and expanding its market presence in various applications [40][41][42]. High-End Components - The high-end components business has a comprehensive R&D system and production capabilities, focusing on digital transformation and expanding its product offerings [44].