Core Insights - Lingxiao Pump Industry has experienced significant growth since its listing on July 11, 2017, with a market value increase from 3.248 billion to 5.716 billion yuan, despite fluctuations in revenue and profit in recent years [1][3] Business Overview - The main business of Lingxiao Pump Industry includes the research, design, production, and sales of civil centrifugal pumps, with core products being plastic bathroom pumps (46.64% of revenue) and stainless steel pumps (35.09% of revenue) [3] - The company achieved a net profit attributable to shareholders of 188 million yuan in 2017, growing to 442 million yuan by the end of the latest complete fiscal year in 2024, marking a cumulative profit growth of 134.87% [3] Financial Performance - Revenue showed a fluctuating trend, with 1.435 billion yuan in 2020 and 1.592 billion yuan in 2024, indicating a rise, fall, and subsequent recovery [3] - The net profit attributable to shareholders also experienced fluctuations, increasing from 359 million yuan in 2020 to 442 million yuan in 2024, reflecting an overall upward trajectory [3] Market Valuation - The peak market value of Lingxiao Pump Industry reached 10.099 billion yuan on December 23, 2021, with a stock price of 28.4 yuan, but as of July 10, the market value decreased to 5.716 billion yuan, representing a reduction of 4.383 billion yuan or 43.40% [5]

Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company reported a Q1 2025 net profit of 1.329 billion yuan, a year-on-year increase of 2.7%, which aligns with expectations [6] - Revenue for Q1 2025 was 2.803 billion yuan, reflecting a year-on-year decline of 7.2%, attributed to a slowdown in toll revenue and smart transportation segment growth [6] - Financial expenses decreased by 21.49% year-on-year to 359 million yuan in Q1 2025, benefiting from interest rate cuts and proactive debt restructuring [6] - The report forecasts net profits for 2025E-2027E at 6.645 billion, 6.758 billion, and 7.255 billion yuan, representing year-on-year growth rates of 24.8%, 1.7%, and 7.4% respectively [6] Financial Data Summary - Total revenue projections for 2025E are 14.841 billion yuan, with a year-on-year growth rate of 16.8% [5] - The company's gross margin is expected to be 35.9% in 2025E, with a return on equity (ROE) of 9.3% [5] - Earnings per share (EPS) is projected to be 0.97 yuan for 2025E, with a price-to-earnings (PE) ratio of 13 [5]