Group 1: Business Strategy and Development Plans - The company will implement the "EPC general contracting + No. 1 project" strategy to drive high-quality development in 2025, focusing on high-end markets and differentiated development in sectors like prefabricated steel structures for hospitals and schools [1] - The company aims to become the leading brand in domestic green low-carbon prefabricated steel structure construction, emphasizing brand and high-end development while actively undertaking national major scientific projects [1] - The company will enhance risk control by strengthening credit assessments of clients during contract reviews and increasing efforts to collect accounts receivable [1] Group 2: New Energy and Green Development - The company will respond to national "dual carbon" goals by developing new energy businesses, utilizing a construction model of "prefabricated + EPC + BIPV" to expand into the green low-carbon energy market [2] - The company plans to explore comprehensive energy businesses, including BIPV, BAPV, centralized photovoltaic, and energy storage [2] - The company will leverage the "Belt and Road" initiative to expand its international business, focusing on green infrastructure and innovative building materials in regions like South America and Southeast Asia [2] Group 3: Accounts Receivable Management - The company emphasizes the importance of accounts receivable collection, implementing measures such as credit assessments and linking sales staff performance to collection outcomes [3] - The primary clients are government entities and large state-owned enterprises, with national debt reduction measures expected to enhance local governments' financial capabilities, aiding in faster accounts receivable recovery [3] Group 4: Photovoltaic Business Development - The company is actively developing photovoltaic projects, with a focus on integrating green energy with modern agriculture through initiatives like the 110MW agricultural photovoltaic power station project [4] - The project is expected to improve the company's photovoltaic capacity and revenue, creating new profit growth points in the renewable energy sector [4] - Recent national policies promoting "anti-involution" are seen as beneficial for maintaining a fair market environment and improving production efficiency [4]

Group 1: Business Strategy and Development Plans - The company will implement the "EPC general contracting + No. 1 project" strategy to drive high-quality development in 2025, focusing on high-end, precision, and challenging market positioning [1] - The company aims to become the leading brand in green low-carbon prefabricated steel structures in China, targeting differentiated development in the Yangtze River Delta and Pearl River Delta regions [1] - The company will enhance risk control by strengthening credit assessments during contract reviews and increasing efforts to collect accounts receivable [1] Group 2: New Energy and Sustainability Initiatives - The company will actively develop new energy businesses in response to national "dual carbon" goals, utilizing a construction model of "prefabricated + EPC + BIPV" [2] - The company plans to expand its comprehensive energy business, including BIPV, BAPV, centralized photovoltaic, and supporting energy storage [2] - The company is committed to integrating green energy with modern agriculture through the construction of a 110MW agricultural photovoltaic power station project, which is expected to enhance its photovoltaic generation capacity and revenue [5] Group 3: International Expansion and Market Opportunities - In 2024, the company signed overseas orders worth 1.23 billion RMB, accounting for 14.68% of the total new contracts signed that year [3] - The company will leverage the "Belt and Road" initiative to expand its business in core regions, focusing on green infrastructure, innovative building materials, and new energy [2] Group 4: Production Capacity and Order Status - The company currently has a steel structure production capacity of approximately 600,000 tons, with plans to increase it to 700,000 tons in the future [6] - In Q1 2025, the company signed new orders totaling 2.468 billion RMB, representing a year-on-year growth of 1.48% [7] Group 5: Research and Development Investments - The company emphasizes technological innovation and has developed ten core technologies in various fields, including prefabricated steel structures and digital construction, which are at the advanced level globally [8] Group 6: Fund Utilization from Convertible Bonds - As of the end of 2024, the company has invested 1.458 billion RMB from convertible bond fundraising into ongoing projects, which are progressing as scheduled [9]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15.84 RMB [5][6]. Core Insights - The company reported a robust performance in Q1 2025, achieving a revenue of 980 million RMB, a year-on-year increase of 22.32%, and a net profit of 100 million RMB, up 28.76% year-on-year. The company is expected to benefit from its ongoing overseas capacity expansion and market share growth [1][2]. - The acceleration of capacity release in Vietnam is anticipated to enhance the company's global footprint and customer base, particularly in the European and Southeast Asian markets. The company is also advancing its "smart manufacturing" strategy, which is expected to further boost profitability [2][3]. - The company's gross margin improved by 0.91 percentage points to 38.8% in Q1 2025, driven by direct sales and personalized products. The management expense ratio decreased by 1.6 percentage points to 11.4%, contributing to enhanced profitability [3]. Summary by Sections Performance Overview - In Q1 2025, the company achieved a revenue of 980 million RMB, representing a 22.32% increase year-on-year, and a net profit of 100 million RMB, reflecting a 28.76% increase year-on-year. The company is positioned as an industry leader with significant advantages in one-stop design services and rapid response supply chains [1]. Capacity Expansion and Global Strategy - The Vietnam industrial park began production at the end of March 2024, with steady capacity ramp-up expected. The second phase of the project is projected to be completed by 2026, which will facilitate market expansion into Europe and Southeast Asia [2]. Profitability and Efficiency - The company's gross margin rose to 38.8%, and the net profit margin increased to 10.3%. The improvement in operational efficiency is evidenced by a reduction in inventory turnover days by 11 days to 111 days and accounts receivable turnover days by 2 days to 46 days [3]. Profit Forecast and Valuation - The report maintains profit forecasts for 2025-2027, estimating net profits of 760 million RMB, 840 million RMB, and 940 million RMB respectively. The company is assigned a PE ratio of 24.4 for 2025, with a target price of 15.84 RMB [4].

Core Insights - The company reported a revenue of 8.376 billion yuan for 2024, with fluctuations in net profit attributed to declining gross margins, increased expense ratios, impairment losses on real estate assets, and increased fair value losses [1] - In Q1 2025, the company achieved a revenue of 2.051 billion yuan, representing a year-on-year growth of 6.75%, while net profit surged by 267.63% to 22.299 million yuan due to revenue growth and reduced expense ratios [1] - The company has been focusing on core business sectors such as network communication, data communication, mobile communication, and automotive electronics, while also expanding into the electronic manufacturing sector to capitalize on the opportunities presented by the wave of intelligent development [1][2] Network Communication Business - In 2024, the company's PON series products saw a slight increase, and it continued to receive mass production orders for the Wi-Fi 7 project from key clients [1] - The company successfully promoted domestic Wi-Fi products and entered the shortlist for network product OEMs for domestic operators [1] Data Communication Business - The company achieved a breakthrough in its industrial switch JDM project in 2024, with the 800G data center switches beginning to ship [2] - By early April 2025, the company had mass-produced general servers, with cumulative shipments exceeding 7,000 units [2] Mobile Communication Business - The company advanced its business expansion and cost reduction efforts in 2024, with the base station product center completing the development of a new platform and multiple new products [2] - Significant cost reductions of over 20% were achieved for the BOM of the full series of fencing products through various strategies [2] Automotive Electronics Business - The company officially entered the automotive electronics sector in 2022, establishing Suzhou Gongjin Automotive Technology Co., Ltd. [2] - In 2024, the company made significant breakthroughs in key clients for millimeter-wave radar and steering gear, as well as in laser radar and automotive amplifier products [2] Future Outlook - The company demonstrated strong resilience in its core business areas throughout 2024 and aims to strengthen cost control while implementing intelligent manufacturing principles to ensure steady progress in a complex market environment [3]