Investment Rating - The report maintains a "Buy" rating for the company [6][17] Core Views - The company experienced a revenue decline of 13.08% year-on-year in 2024, with total revenue of 2.49 billion. However, the net profit attributable to the parent company increased by 5.03% to 169.24 million [1][5] - The company is the largest composite pipeline manufacturer globally and is expanding into new fields such as hydrogen energy, nuclear power, and marine photovoltaics, which is expected to enhance its market share in the pipeline sector [1] - Despite fierce competition in the domestic pipeline market since 2024, the company is projected to achieve net profits of 200 million, 240 million, and 290 million for the years 2025 to 2027, respectively [1] Financial Performance - In 2024, the company's comprehensive gross margin was 18.67%, a decrease of 0.71 percentage points year-on-year, while the gross margin for Q1 2025 was 21%, an increase of 5.16 percentage points year-on-year [3] - The company’s operating expenses ratio was 12.23% in 2024, up 1.45 percentage points year-on-year, with financial expenses increasing by 14.25% due to higher interest and fees [3] - The net profit margin improved by 0.97 percentage points to 6.8% in 2024, influenced by non-recurring gains such as asset impairment reversals and increased investment income [3] Market Outlook - National water conservancy investment reached a historical high of 1.35 trillion in 2024, marking the third consecutive year of exceeding 1 trillion. The first quarter of 2025 saw a 2.9% year-on-year increase in water conservancy investment [4] - The report anticipates a strong performance for the company in Q2, supported by accelerated funding for water conservancy projects, including a 37% year-on-year increase in local government special bonds [4]