Core Viewpoint - The company reported a decline in net profit for 2024 and Q1 2025, while facing challenges in the domestic photovoltaic market and focusing on expanding its semiconductor business as a new growth avenue [1][2][3]. Financial Performance - In 2024, the company achieved revenue of 1.78 billion yuan, a year-on-year increase of 0.59%, while net profit attributable to shareholders was 323 million yuan, a year-on-year decrease of 25.19% [1]. - For Q1 2025, the company reported revenue of 325 million yuan, a year-on-year decline of 13.3%, and a net profit of 50 million yuan, down 36.84% year-on-year [1]. Industry Challenges - The domestic photovoltaic sector is experiencing significant pressure from price wars, leading to a 42% year-on-year decrease in order volume for photovoltaic equipment manufacturers in 2024 [2]. - The price war has spread from the silicon material segment to the mid and downstream sectors, causing a substantial contraction in profits across the entire industry chain [2]. Strategic Initiatives - To mitigate the impact of the domestic photovoltaic market downturn, the company is enhancing its overseas market expansion, achieving better order performance in Asia [2]. - The company is increasing its investment in the semiconductor sector, which is expected to benefit from a recovery driven by AI, high-performance computing, and 5G technologies, with the global semiconductor market projected to reach $628 billion in 2024, a year-on-year growth of 19.1% [3]. - The company is focusing on key semiconductor processes such as etching, chemical vapor deposition (CVD/PECVD), and ion implantation, while also exploring emerging fields like silicon carbide epitaxy and composite copper foil [3]. Investment Outlook - Revenue projections for the company from 2025 to 2027 are estimated at 2.56 billion yuan, 3.046 billion yuan, and 3.65 billion yuan, with net profits of 586 million yuan, 736 million yuan, and 903 million yuan respectively [4]. - The company is assigned a target price of 53.03 yuan based on a 20x PE ratio for 2025, maintaining a "Buy-A" investment rating [4].