Investment Rating - The report assigns an "Accumulate" rating for the company, with a target price of 27.95 yuan based on a 2025 industry average PE of 13 times [6][7]. Core Viewpoints - The company has a stable foundation in smart electricity products, with a significant growth opportunity in the global power grid upgrade [1]. - The smart meter market is expected to grow from 162 million units in 2024 to 236 million units by 2029, with a compound annual growth rate (CAGR) of 7.81% [6]. - The company has established a complete industrial chain and sales channels overseas, contributing to its competitive advantage [6][20]. Financial Data and Profit Forecast - Total revenue is projected to reach 5,021 million yuan in 2025, with a year-on-year growth rate of 6.4% [2]. - The net profit attributable to the parent company is expected to be 1,049 million yuan in 2025, reflecting a 4.7% year-on-year increase [2]. - Earnings per share (EPS) is forecasted to be 2.16 yuan in 2025, with a PE ratio of 12 [2][7]. Company Overview - The company has been operating since 1992, focusing on smart electricity products and systems, and has transitioned to a comprehensive solution provider since 2015 [6][20]. - It has established eight production bases domestically and internationally, with products sold in over 90 countries [6][20]. - The company has a strong presence in the smart meter market, with significant participation in domestic and international tenders [6][20]. Market Dynamics - The global demand for smart meters is expected to rise, driven by the increasing need for efficient power management and energy utilization [6][64]. - The company is actively involved in the development of local standards and certifications for smart meters in overseas markets [6][20]. - The investment in smart meters exceeded 20 billion USD in both 2021 and 2022, nearly doubling since 2015 [6]. Product and Service Offering - The company’s product categories include smart electricity products, smart distribution products, and renewable energy systems [6][32]. - It emphasizes research and development, with a stable investment in R&D, accounting for 6.59% of revenue in 2024 [6][35]. - The company has a diverse product range, including smart energy meters, smart terminals, and renewable energy solutions [6][32].

Core Viewpoint - Linyang Energy has shown steady growth in its electric meter sales, despite facing challenges from credit impairment and fair value changes impacting profits, leading to a maintained buy rating from analysts [1][2]. Financial Performance Summary - In 2024, Linyang Energy reported a revenue of 6.742 billion yuan, a decrease of 1.89% year-on-year, and a net profit of 753 million yuan, down 27.00% year-on-year. The adjusted net profit was 763 million yuan, reflecting a 12.00% decline [3]. - The fourth quarter of 2024 saw a significant loss of 157 million yuan, a decrease of 187.19% year-on-year and 150.48% quarter-on-quarter. The overall gross margin for 2024 was 29.54%, an increase of 1.11 percentage points, while the net margin was 11.42%, down 3.84 percentage points [3]. - For the first quarter of 2025, the company reported a revenue of 1.124 billion yuan, a decrease of 27.69% year-on-year, and a net profit of 124 million yuan, down 43.26% year-on-year, but showing a recovery from a loss in the previous quarter. The adjusted net profit was 122 million yuan, down 38.62% year-on-year [3]. - The gross margin for Q1 2025 was 27.58%, a decrease of 2.43 percentage points year-on-year, but an increase of 7.66 percentage points quarter-on-quarter. The net margin was 10.67%, down 3.21 percentage points year-on-year [3]. Business Segment Performance - The electric meter business achieved a revenue of 2.704 billion yuan in 2024, representing an 18.94% year-on-year growth, with a corresponding gross margin of 36.12%, up 1.19 percentage points [4]. - The demand for smart electric meters is expected to remain strong, driven by the upgrade of aging equipment in North America and the replacement and technological iteration in mature markets [4]. Valuation and Forecast - The earnings per share (EPS) forecasts for 2025-2027 have been adjusted to 0.41, 0.47, and 0.53 yuan, respectively, with corresponding price-to-earnings ratios of 13.6, 12.1, and 10.6 times. The buy rating is maintained due to the stability of the electric meter business [5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 6.742 billion yuan in 2024, a year-on-year decrease of 2%, and a net profit attributable to shareholders of 753 million yuan, down 27% year-on-year [2][6] - In Q4 2024, the company achieved a revenue of 1.576 billion yuan, a decline of 26% year-on-year, with a net profit of -157 million yuan [2][6] - For Q1 2025, the company reported a revenue of 1.124 billion yuan, down 28% year-on-year, and a net profit of 124 million yuan, a decrease of 43% year-on-year [2][6] Summary by Sections Smart Metering Segment - The company strengthened its domestic market share and expanded its overseas presence, winning contracts worth approximately 631 million yuan from State Grid and 601 million yuan from Southern Grid in 2024 [12] - Revenue from smart meters and terminals reached 2.704 billion yuan, an increase of 18.9% year-on-year, with a gross margin of 36.12%, up 1.19 percentage points [12] New Energy Segment - The company is steadily advancing its power station construction and expanding its intelligent operation and maintenance scale, with over 1,245 MW of projects under construction and over 545 MW of projects started in 2024 [12] - Revenue from power station sales was 1.186 billion yuan, down 8.5% year-on-year, with a gross margin of 25.94%, up 14.46 percentage points [12] Energy Storage Segment - The company has delivered over 4.5 GWh of energy storage systems and has over 10 GWh of projects in reserve, maintaining a stable gross margin during a period of declining industry prices [12] - Revenue from the energy storage business was 919 million yuan, with a gross margin of 17.64%, up 1.55 percentage points year-on-year [12] - The company anticipates significant growth in its overseas energy storage business in 2025, with overall revenue expected to enter a high growth phase [12]

Core Viewpoint - The company reported a steady growth in revenue and net profit for 2024, with a focus on expanding its overseas business and maintaining strong sales margins in its electric meter segment [1][2][3]. Financial Performance - In 2024, the company achieved a revenue of 2.029 billion yuan, a year-on-year increase of 14.54% - The net profit attributable to shareholders was 665 million yuan, up 9.45% year-on-year - The net profit excluding non-recurring items was 645 million yuan, reflecting a growth of 22.89% year-on-year - For Q4 2024, the company reported a revenue of 483 million yuan, a decrease of 7.71% year-on-year and 9.17% quarter-on-quarter - The net profit for Q4 was 123 million yuan, down 25.47% year-on-year and 38.70% quarter-on-quarter [1]. Business Segments - The smart metering and collection systems segment generated revenue of 1.641 billion yuan, a year-on-year increase of 14.31%, with a gross margin of 51.15%, up 3.84 percentage points - The IoT sensors and accessories segment saw revenue of 167 million yuan, a significant growth of 48.85%, with a gross margin of 33.12%, up 4.27 percentage points - The smart power distribution products and systems segment achieved revenue of 86 million yuan, a growth of 9.06%, with a gross margin of 23.08%, up 0.25 percentage points - The smart power terminal and systems segment reported revenue of 65 million yuan, a decrease of 16.54%, with a gross margin of 41.61%, down 6.37 percentage points - The smart flow meters and systems segment had revenue of 54 million yuan, a slight decrease of 0.79%, with a gross margin of 24.57%, down 9.68 percentage points - Overall, the company's sales gross margin improved by 2.72 percentage points to 47.55% [2]. International Expansion - The company achieved overseas revenue of 203 million yuan, a year-on-year increase of 56.04%, with a gross margin of 36.84%, down 1.01 percentage points - The company is a key supplier and strategic partner for major power companies in Europe, including E.ON in Germany and Hungary - The company is actively expanding its market presence in Europe, Southeast Asia, Central Asia, and Africa, with expectations for significant contributions from overseas electric meter business in the future [3]. Profit Forecast and Valuation - The company maintains a steady growth outlook, with profit forecasts for 2025, 2026, and 2027 set at 762 million yuan, 886 million yuan, and 990 million yuan respectively - Corresponding EPS for these years are projected to be 1.48 yuan, 1.72 yuan, and 1.93 yuan - The current stock price corresponds to a PE ratio of 10, 9, and 8 times for 2025, 2026, and 2027 respectively - As a leading domestic smart meter company, the firm is well-positioned to benefit from the growing domestic demand for electric meters while actively pursuing international market opportunities, indicating strong growth potential [3].