Financial Performance - In 2024, the company achieved an operating income of 124,182.22 million yuan, a year-on-year increase of 22.89%. However, net profit decreased by 18.72% to 12,252.67 million yuan, and non-recurring net profit fell by 17.62% [2] - In Q1 2025, the company reported an operating income of 33,946.01 million yuan, a year-on-year growth of 47.22%. Net profit reached 3,351.22 million yuan, up 3.08%, while non-recurring net profit increased by 5.69% to 3,268.69 million yuan [2] Challenges and Strategies - The primary reason for the increase in revenue without a corresponding increase in profit is the decline in gross margin due to reduced demand from major clients [2][3] - To improve profitability, the company plans to restructure its organization, implement flat management, and enhance resource allocation to regional subsidiaries for new product development and market expansion [2][3] R&D and Talent Development - The company is focusing on enhancing its R&D capabilities and talent acquisition to maintain competitiveness, including optimizing product structures and improving quality control [3][4] - A dedicated technical team has been established to engage in strategic projects and core product development, reducing the risk of project failures [4] Market Expansion - In 2024, the company successfully expanded its client base by adding notable EVTOL and civil aircraft manufacturers, and initiated business in the aviation sector [5] - The company has also made progress in energy storage and battery integration businesses, collaborating with major clients [5][6] Technological Advancements - The company has accumulated significant core technologies in liquid cooling management products, with several patents filed [6] - A new subsidiary, Sulian Zhikong, was established to independently develop energy storage and thermal management products, aiming to create a second growth curve [6] Future Goals and Growth Drivers - The main operational goals for 2025 include maintaining and expanding existing markets while continuously developing new products and markets [7] - Future profit growth will be driven by market expansion, cost reduction, and increased R&D investment [7][8] Stock Performance and Market Perception - The fluctuation in stock price is influenced by macroeconomic policies, industry regulations, and investor sentiment. The company aims to enhance its market image and brand value through improved management and communication with investors [8]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance relative to market benchmarks [5][11]. Core Insights - The company has demonstrated strong revenue growth, achieving a revenue of 1,241.82 million yuan in 2024, a year-on-year increase of 22.89%. However, the net profit attributable to the parent company decreased by 18.72% to 122.53 million yuan [1][12]. - In Q1 2025, the company reported a revenue of 339.46 million yuan, reflecting a significant year-on-year growth of 47.22%, with a net profit of 33.51 million yuan, up 3.08% [1]. - The company is actively expanding into new markets and product lines, having added over 1,000 new product designations in 2024, which supports ongoing revenue growth [2]. Revenue and Profitability - The automotive fluid pipeline and assembly business generated revenue of 1,082.59 million yuan in 2024, up 22.93% year-on-year, while the automotive fluid control components and precision injection parts saw a revenue increase of 31.93% to 141.98 million yuan [1]. - The company benefited from the growing demand for thermal management pipelines in the new energy vehicle sector, with sales of 29.16 million units in 2024, representing a 118.5% increase from 2023 [1]. - The overall gross margin for 2024 was 22.86%, down from 28.11% in 2023, indicating pressure on profitability due to increased competition [3]. Market Expansion and R&D - The company has maintained a high level of investment in research and development, with a R&D expense ratio of 5.29% in 2024, focusing on innovative products such as high-pressure air suspension connectors and rapid connectors for liquid cooling servers [4]. - The establishment of a subsidiary, Sulian Zhikong, aims to independently develop liquid cooling products for energy storage and computing power management, indicating a strategic move to diversify revenue streams [4]. Financial Projections - The company forecasts net profits of 152.08 million yuan, 191.51 million yuan, and 238.24 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.27, 1.60, and 1.99 yuan [11][12]. - The projected revenue growth rates for the next few years are 25.60% for 2025, 24.02% for 2026, and 23.49% for 2027, reflecting a robust growth trajectory [12].