Group 1: Financial Performance - The company reported significant growth in 2024, with revenue and net profit increasing substantially due to client project increments and new customer acquisitions [2] - Existing client project increments are primarily reflected in the core products, such as washing machine angle valves and PEX valves, which gained market recognition and steady order growth [2] - The company aims to ensure sustainable performance by expanding into markets outside the U.S., including Australia, South America, and Southeast Asia [2] Group 2: Product and Market Strategy - The company's pipe fittings are included in the tariff exemption list, with pipe fittings accounting for 31.46% of the product mix according to the 2024 annual report [3] - Future R&D efforts will focus on both domestic and international markets, with a shift from civil to industrial valve sectors and a push towards integrated and intelligent product development [3] - The company has established an overseas production base in Vietnam, with a capacity to produce 42 million valve and hardware items annually, aimed primarily at the U.S. market [3] Group 3: Customer Base and Expansion - Current major customers include global water control system providers and chain home improvement retailers, with plans to expand into channel distribution clients [4] - The company is actively seeking potential acquisition opportunities to enhance its strategic planning and broaden application scenarios [4] Group 4: Market Trends and Demand - The demand for lead-free copper plumbing products has shifted from "elastic" to "rigid" due to environmental regulations in developed countries, with significant growth in markets like Australia and Europe [5][6] - The company is positioned to leverage this trend, having already achieved order breakthroughs in the Australian market for lead-free copper products [5] Group 5: Competitive Landscape - The global valve industry is experiencing stable demand due to infrastructure upgrades and environmental policies in developed countries, while emerging markets in the Asia-Pacific region are becoming new growth points [6] - The company has established a strong reputation in the high-barrier U.S. market and is recognized by numerous international manufacturers and distributors [7] Group 6: Dividend Policy - For 2024, the company plans to distribute a cash dividend of 3 yuan per 10 shares, totaling 30 million yuan, with a commitment to a stable and scientific dividend return mechanism [7] - The dividend distribution policy is designed to ensure continuity and stability, with previous distributions of 6 yuan per 10 shares in 2022 and 3 yuan in 2023 [7]

Core Viewpoint - New Lai Fu (301323) reported a decline in profits for Q1 2024 due to rising raw material costs, factory relocation, and increased expenses, but remains optimistic about future growth driven by cost stabilization, capacity recovery, and innovative projects [2][3][8] Group 1: Financial Performance - In Q1 2024, the company achieved a revenue of 207 million yuan, an increase of 8.59% year-on-year [8] - The net profit attributable to shareholders was 30.47 million yuan, a decrease of 16.05% year-on-year [8] - The gross profit margin stood at 35.17% [8] Group 2: Factors Affecting Profitability - The decline in profit was primarily due to a 15% increase in raw material prices for magnetic powder and a 30% increase for silver powder, alongside significant cost pressures from the MIM project [2] - The relocation of the Bick factory from Huizhou to Guangzhou impacted production capacity, leading to increased unit costs and a drop in gross margin [2] - R&D and share-based payment expenses increased by over 5 million yuan compared to Q1 2023, further burdening costs [2] Group 3: Future Outlook - The company anticipates a gradual alleviation of cost pressures as raw material prices stabilize and product pricing strategies are implemented [3] - With the completion of the Bick factory relocation, production capacity is expected to recover and improve significantly, leading to a potential increase in gross margin [3] - The MIM project is projected to become a new growth driver, aligning with the increasing demand in smart wearables, robotics, and high-end manufacturing [3] - Continuous innovation and R&D investments are expected to expand market opportunities and enhance product competitiveness [3] Group 4: Product Development and Market Strategy - The company has made breakthroughs in lead-free radiation protection materials, focusing on material innovation and process upgrades, with production capacity exceeding 300,000 square meters [4][5] - The company aims to penetrate European and North American markets while also targeting emerging regions like Southeast Asia and the Middle East [5] - New projects, including the second phase of magnetic material construction, are progressing well, with trial production expected to start in April 2025 [3][4] Group 5: Research and Development Progress - The company has successfully developed spherical metal electronic powders with precise customization from 200 nanometers to 10 microns, enhancing its product offerings [7] - The special ultra-fine metal powder project has completed batch testing and is now entering the customer validation phase [7]