Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 1.09 billion yuan in Q1 2025, representing a year-on-year increase of 15.5% and a quarter-on-quarter decrease of 2.2%. The net profit attributable to the parent company was 100 million yuan, up 15.1% year-on-year and up 6896.5% quarter-on-quarter [2][4]. - The company is expected to benefit from the growth in the new energy sector, with anticipated increases in digital energy and a narrowing decline in the real estate sector [10]. - The gross profit margin for Q1 2025 was 31.56%, a decrease of 0.82 percentage points year-on-year but an increase of 3.90 percentage points quarter-on-quarter [10]. - The company’s inventory at the end of Q1 2025 was 441 million yuan, down 10.9% year-on-year and down 6.0% quarter-on-quarter. Contract liabilities were 50 million yuan, up 83.1% year-on-year and down 15.3% quarter-on-quarter [10]. - The company is expected to see order growth outpacing revenue growth in 2025, with significant contributions anticipated from new energy, smart distribution, and data center businesses [10]. Financial Summary - For 2025, the company is projected to achieve a net profit of 450 million yuan, corresponding to a price-to-earnings ratio of approximately 21 times [10]. - The total revenue forecast for 2025 is 5.08 billion yuan, with a gross profit of 1.55 billion yuan, maintaining a gross margin of 31% [17]. - The company’s cash flow from operating activities for Q1 2025 was 54 million yuan, an increase of 86.9% year-on-year [10].

Core Viewpoint - The company reported a decline in revenue and net profit for the year 2024, indicating significant operational challenges, particularly in the real estate sector [1][2]. Revenue Summary - The total revenue for 2024 was 4.24 billion, a year-on-year decrease of 7.6% [1]. - Revenue breakdown by segment: - Power distribution equipment: 2.759 billion, down 1.8% - Terminal equipment: 835 million, down 23.9% - Control equipment: 458 million, up 3.9% - Electrical products: 156 million, down 29.3% - Other businesses: 29 million, up 67.1% [2]. - Domestic revenue was 4.134 billion, down 7.5%, while overseas revenue was 104 million, down 11.5% [2]. Profitability Summary - The net profit attributable to shareholders for 2024 was 310 million, down 38.9% year-on-year [1]. - The gross profit margin for 2024 was 30.36%, a decrease of 2.09 percentage points [2]. - In Q4 2024, the gross profit margin was 27.66%, down 1.35 percentage points year-on-year [2]. Expense Summary - The total expense ratio for 2024 was 23.28%, an increase of 3.00 percentage points year-on-year [3]. - Breakdown of expense ratios: - Selling expense ratio: 9.50%, up 0.66 percentage points - Administrative expense ratio: 6.53%, up 1.11 percentage points - R&D expense ratio: 7.36%, up 1.18 percentage points - Financial expense ratio: -0.11%, up 0.05 percentage points [3]. - In Q4 2024, the total expense ratio was 28.17%, up 8.26 percentage points year-on-year [3]. Future Outlook - The company is expected to reach a net profit of 450 million in 2025, corresponding to a PE ratio of approximately 20X, with potential growth from new energy, smart distribution, and data center businesses [3].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company is expected to hit a bottom in operations in 2024, with a potential recovery in 2025. The growth in new energy, smart distribution, and data center businesses is anticipated to contribute significantly to revenue [10][4]. Financial Performance Summary - In 2024, the company achieved total revenue of 4.24 billion yuan, a year-on-year decrease of 7.6%. The net profit attributable to shareholders was 310 million yuan, down 38.9% year-on-year, while the net profit excluding non-recurring items was 260 million yuan, a decline of 41.6% [2][4]. - For Q4 2024, the company reported revenue of 1.11 billion yuan, a decrease of 1.4% year-on-year and 0.1% quarter-on-quarter. The net profit attributable to shareholders was 1 million yuan, down 98.5% year-on-year and 98.0% quarter-on-quarter, with a slight loss in net profit excluding non-recurring items [2][4]. - The revenue breakdown by segment for 2024 shows: - Distribution electrical appliances: 2.759 billion yuan, down 1.8% - Terminal electrical appliances: 835 million yuan, down 23.9% - Control electrical appliances: 458 million yuan, up 3.9% - Electrical products: 156 million yuan, down 29.3% - Other businesses: 29 million yuan, up 67.1% [10]. - The gross margin for 2024 was 30.36%, a decrease of 2.09 percentage points year-on-year. The gross margin for Q4 2024 was 27.66%, down 1.35 percentage points year-on-year and 1.98 percentage points quarter-on-quarter [10]. - The total expense ratio for 2024 was 23.28%, an increase of 3.00 percentage points year-on-year, with specific increases in sales, management, and R&D expense ratios [10]. Future Projections - The company is projected to achieve a net profit of 450 million yuan in 2025, corresponding to a price-to-earnings ratio of approximately 20 times [10].