Core Viewpoint - The company reported a revenue of 3.391 billion yuan in 2024, a year-over-year decrease of 7.44%, and a net profit of 508 million yuan, down 44.24%, which was below the expected 630 million yuan [1] - The decline in revenue was primarily due to price reductions in the downstream new energy vehicle sector and inventory destocking in the photovoltaic industry, alongside increased depreciation pressure from new production lines and higher R&D investments [1] Group 1: Financial Performance - In Q1 2025, the company achieved a revenue of 919 million yuan, representing a year-over-year increase of 14.22% but a quarter-over-quarter decrease of 5.84%, with a net profit of 104 million yuan, down 36.22% year-over-year but up 22.94% quarter-over-quarter [1] - The revenue from IGBT modules accounted for over 90% in 2024, with industrial, new energy, and home appliance sectors contributing 32%, 59%, and 8% respectively, showing year-over-year changes of -14%, -6.8%, and +34.2% [2] Group 2: Market and Product Strategy - The new energy vehicle sector showed resilience with a revenue growth of 26.7%, exceeding 3 million units in installed capacity and over 40% growth in shipments, particularly in Europe with significant deliveries to Tier 1 customers [2] - The company plans to optimize its product structure in 2025, focusing on increasing shipments of automotive-grade IGBT modules and silicon carbide (SiC) modules, while actively expanding into new business areas such as IPM and MCU [1][3] Group 3: Future Outlook - For 2025, the company aims to deepen its high-end strategy with a focus on automotive-grade power modules, leveraging collaborations with major automotive manufacturers and expanding its global footprint [3] - The company has acquired 80% of Meiken Semiconductor, which specializes in the white goods sector, to create a comprehensive smart power solution [3] Group 4: Valuation and Projections - The target price is set at 88.97 yuan, maintaining a "buy" rating, with revenue forecasts for 2025 and 2026 adjusted down by 9% and 12% to 4.078 billion yuan and 4.851 billion yuan respectively, and a new forecast for 2027 at 5.684 billion yuan [4] - The net profit forecasts for 2025 and 2026 have been reduced by 24% and 22% to 620 million yuan and 810 million yuan respectively, with a new forecast for 2027 at 1.04 billion yuan [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 88.97 RMB [7][4]. Core Views - The company experienced a revenue decline of 7.44% year-on-year in 2024, with total revenue of 3.391 billion RMB and a net profit of 508 million RMB, which was below expectations [1][2]. - The decline in revenue was primarily due to price reductions in the downstream electric vehicle sector and inventory destocking in the photovoltaic industry, alongside increased depreciation and R&D expenses [1][2]. - For 2025, the company plans to optimize its product structure, focusing on increasing shipments of automotive-grade IGBT modules and silicon carbide (SiC) modules, while also expanding into new business areas such as IPM and MCU [1][3]. Summary by Sections Financial Performance - In 2024, IGBT module revenue accounted for over 90% of total revenue, with industrial, new energy, and home appliance sectors contributing 32%, 59%, and 8% respectively [2]. - The company reported a 14.22% year-on-year revenue growth in Q1 2025, with total revenue of 919 million RMB, although net profit decreased by 36.22% year-on-year [1][2]. Market Outlook - The company is expected to benefit from the stabilization of price reductions in the industry and the ramp-up of its new production lines, particularly in the automotive sector [3]. - The introduction of new IGBT modules based on advanced technology is anticipated to drive sales in the photovoltaic and energy storage markets [3]. Revenue and Profit Forecast - The revenue forecast for 2025 has been adjusted downwards by 9% to 4.078 billion RMB, with net profit estimates reduced by 24% to 620 million RMB [4][6]. - The company is projected to achieve a revenue of 5.684 billion RMB by 2027, with a net profit of 1.035 billion RMB [4][6].