Group 1 - The core viewpoint of the report is that Guotai Junan Securities has given Antu Biology (603658.SH) a "buy" rating based on its market performance and growth potential [2] - The report highlights that the domestic market is currently under pressure, but Antu Biology is expected to consolidate and increase its market share [2] - Continuous high investment in research and development is anticipated to contribute to long-term growth as the company explores new fields [2]

Core Viewpoint - The company reported a strong financial performance for 2024, with significant year-on-year growth in revenue and net profit, indicating robust operational capabilities and effective cost management [1][2]. Financial Performance - For 2024, the company achieved revenue of 3.61 billion yuan, a year-on-year increase of 23.2%, and a net profit attributable to shareholders of 220 million yuan, up 130.7% [1]. - The fourth quarter alone saw revenue of 1.62 billion yuan, with net profit reaching 130 million yuan, reflecting a year-on-year growth of 28.9% and 253.4% respectively [1]. - The operating cash flow for the year was 290 million yuan, showing a slight increase of 0.6% year-on-year [1]. Industry Growth - The power industry revenue reached 1.86 billion yuan, growing by 5.6%, while other sectors saw a significant increase of 49.8% to 1.74 billion yuan [1]. - New strategic sectors, including oil and gas, nuclear industry, transportation, government emergency services, and power generation, generated 1.09 billion yuan in revenue, marking an 80.0% increase [1]. Sales Model Breakdown - Revenue from distribution products, self-developed products, and services amounted to 2.54 billion yuan, 670 million yuan, and 390 million yuan respectively, with year-on-year growth rates of 23.4%, 29.1%, and 12.9% [2]. Cost Management and Profitability - The overall gross margin for 2024 was 29.7%, a decrease of 2.5 percentage points, primarily due to lower margins from new high-growth sectors [2]. - The expense ratio improved to 19.4%, down 3.3 percentage points, with reductions in sales, management, and R&D expense ratios contributing to enhanced profitability [2]. - The net profit margin for the year was 6.6%, an increase of 2.9 percentage points year-on-year [2]. Q4 Performance Insights - In Q4, the gross margin was 31.8%, down 3.8 percentage points, while the expense ratio was 17.4%, a decrease of 4.6 percentage points [3]. - The net profit margin for Q4 was 8.6%, reflecting a year-on-year increase of 5.0 percentage points [3]. Future Outlook - The company is well-positioned in the power grid sector with a diverse product line and a nationwide service network, anticipating continued revenue growth [3]. - Profitability in new sectors is expected to improve gradually, leading to revised net profit forecasts for 2025 and 2026 at 266 million yuan and 316 million yuan respectively, with a new estimate for 2027 at 359 million yuan [3].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company achieved revenue of 3.61 billion yuan, net profit attributable to shareholders of 220 million yuan, and net profit excluding non-recurring items of 230 million yuan in 2024, representing year-on-year growth of 23.2%, 130.7%, and 34.7% respectively [1] - The company plans to distribute a dividend of 0.36 yuan per share, yielding 2.6% based on the announcement date [1] - The company is expanding into new strategic sectors, with significant revenue growth in oil and gas, nuclear industry, transportation, government emergency services, and power generation, which collectively generated 1.09 billion yuan in revenue, up 80% year-on-year [2] Financial Performance - The comprehensive gross margin for 2024 was 29.7%, down 2.5 percentage points year-on-year, primarily due to lower margins from new business areas [3] - The operating cash flow for 2024 was 290 million yuan, with a year-on-year increase of 0.6% [1] - The net profit margin for Q4 was 8.6%, an increase of 5.0 percentage points year-on-year [3] Revenue and Profit Forecast - The company is expected to continue revenue growth, with projected revenues of 4.33 billion yuan in 2025 and 5.15 billion yuan in 2026, reflecting growth rates of 19.99% and 19.03% respectively [5] - The forecast for net profit attributable to shareholders is adjusted to 266 million yuan for 2025 and 316 million yuan for 2026, with a new estimate of 359 million yuan for 2027 [4] Valuation Metrics - The report provides a projected P/E ratio of 22 for 2025 and 19 for 2026, indicating a favorable valuation outlook [5] - The projected dividend per share is expected to increase to 0.41 yuan in 2025 and 0.49 yuan in 2026, with a corresponding dividend yield of 2.9% and 3.4% [13]