Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The demand for transformers is expected to be strong in 2025, leading to significant growth in the company's performance [7] - The company reported a revenue of 1.348 billion yuan in 2024, a year-on-year increase of 34.29%, while the net profit attributable to shareholders was 0.43 billion yuan, a year-on-year decrease of 41.31% [7] - The company anticipates a high growth rate in 2025 due to robust domestic and international demand for transformers, with a backlog of orders [7] Financial Performance Summary - Revenue projections for the company are as follows: - 2023A: 1,004 million yuan - 2024A: 1,348 million yuan (up 34.29%) - 2025E: 1,840 million yuan (up 36.54%) - 2026E: 2,359 million yuan (up 28.21%) - 2027E: 2,962 million yuan (up 25.56%) [1][8] - Net profit projections are as follows: - 2023A: 73.03 million yuan - 2024A: 42.86 million yuan (down 41.31%) - 2025E: 84.44 million yuan (up 97.00%) - 2026E: 123.08 million yuan (up 45.76%) - 2027E: 168.03 million yuan (up 36.53%) [1][8] - The company’s earnings per share (EPS) are projected to be: - 2023A: 0.39 yuan - 2024A: 0.23 yuan - 2025E: 0.45 yuan - 2026E: 0.66 yuan - 2027E: 0.90 yuan [1][8] Business Segment Performance - In 2024, the revenue breakdown by business segment is as follows: - Transformers: 450 million yuan (down 8.25%) - High and low voltage complete switchgear: 238 million yuan (up 8.39%) - Outdoor complete equipment: 242 million yuan (up 22.09%) - Other businesses: 373 million yuan (up 588.76%), primarily from the Huangshan subsidiary [7] - The gross profit margins for these segments are: - Transformers: 20.74% - High and low voltage complete switchgear: 21.18% - Outdoor complete equipment: 19.16% [7] Expense Management - The company has seen a slight decrease in various expense ratios in 2024: - Selling expense ratio: 3.17% (down 0.22 percentage points) - Management expense ratio: 3.94% (down 1.12 percentage points) - R&D expense ratio: 2.62% (down 0.90 percentage points) - Financial expense ratio: 1.26% (up 0.46 percentage points) [7]