Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2][11] Core Views - The company's performance is under short-term pressure, with a revenue of 2.589 billion yuan in 2024, down 2.67% year-on-year, and a net profit attributable to shareholders of 294 million yuan, down 25.78% year-on-year. The decline is attributed to cautious capital expenditure by many enterprises amid a weak macroeconomic recovery, leading to weak overall demand in the reducer market [2][11] - The company is accelerating the research and promotion of new products to enhance brand competitiveness, with various divisions increasing product development efforts [6][11] Financial Performance Summary - In 2024, the company achieved total revenue of 25.89 billion yuan, a decrease of 2.67% year-on-year, and a net profit of 2.94 billion yuan, down 25.78% year-on-year. The first quarter of 2025 saw revenue of 6.02 billion yuan, an increase of 2.8% year-on-year, but net profit decreased by 33.4% year-on-year [2][4] - The gross profit margin for 2024 was 21.13%, down 4.88 percentage points year-on-year, with a first-quarter gross profit margin of 19.63%, down 3.37 percentage points year-on-year. The decline is mainly due to weak demand in the reducer industry and intense product price competition [3][4] - The company's net profit margin for 2024 was 11.48%, down 3.31 percentage points year-on-year, influenced by the decline in gross margin and underperformance of the acquired company [4] - As of the end of 2024, the company's inventory increased by 14.52% year-on-year to 624 million yuan, while contract liabilities rose by 2.04% to 72 million yuan. The net cash flow from operating activities improved by 11.53% year-on-year to 594 million yuan [5][11] Product Development and Market Position - The company is focusing on accelerating the development and promotion of new products, including the modular reducer GR-129 series and various new gearboxes, which are expected to gradually enhance brand competitiveness [6][11]