Group 1: Financial Performance - The net profit after deducting non-recurring gains and losses increased by 129.94% year-on-year [2] - Revenue from existing businesses in the consumer electronics sector (including 3D printing) reached approximately 156.84 million yuan, a year-on-year growth of about 5.68% [3] - Revenue from new businesses in the semiconductor and new energy sectors amounted to approximately 54.67 million yuan, with a year-on-year growth of about 54.66% [3] Group 2: Business Development - The company is developing PCB separation equipment to meet the demand for high-end PCB processing, with an expected annual order volume of approximately 90 million yuan [3] - New flexible processing equipment for FPC cutting, drilling, and separation is under optimization and market expansion [3] - The laser module business has seen significant growth, compensating for a slight decline in laser revenue [4] Group 3: Market Expansion - The company is focusing on expanding its global marketing and service network, with a new subsidiary in Japan [5] - Key markets for expansion include the United States, Europe, Japan, South Korea, and India, with strategic partnerships established with major global companies [5] - The overseas marketing team's capabilities have improved, enhancing product technical support for global clients [5] Group 4: Cash Flow and R&D - The company is taking measures to improve cash flow, including better management of accounts receivable and inventory optimization [5] - Ongoing R&D projects are being monitored through regular reports and announcements [6] - The company has delivered multiple TOPCon battery devices and is progressing with HJT battery laser equipment [6]

Investment Rating - The report rates the lithium battery equipment industry as "Overweight" due to its expected outperformance compared to the overall market [4]. Core Insights - Solid-state batteries are anticipated to drive increased equipment demand due to their multiple performance advantages, including high energy density, safety, and long cycle life. The market for semi-solid batteries is projected to reach 10GWh in shipments by 2024, with full solid-state batteries expected to enter the GWh application stage by 2028 [4]. - The application of lasers in solid-state batteries is more extensive than in traditional lithium batteries, leading to an expected increase in the value per GW. Key processes include laser insulation of electrode sheets, preheating of dry electrodes, ultra-fast laser cutting, online cleaning with lasers, and laser welding [4]. - Key companies in the sector include Lianying Laser, Delong Laser, Haimu Star, and Jieput. These companies are actively developing equipment suitable for solid-state battery production and have secured orders or partnerships with industry leaders [4]. Summary by Sections Industry Overview - Solid-state batteries are gaining traction due to their superior characteristics, which are expected to accelerate equipment demand [4]. Technology Application - Laser technology is increasingly utilized in various stages of solid-state battery production, enhancing efficiency and reducing costs compared to traditional methods [4]. Key Companies - Lianying Laser has developed equipment for solid-state battery production and has increased its delivery of devices compared to previous years [4]. - Delong Laser focuses on key technologies such as laser insulation and has received orders for its equipment [4]. - Haimu Star is collaborating with leading firms in solid-state battery technology and has signed significant procurement contracts [4]. - Jieput continues to deliver laser products to battery clients, improving production efficiency and quality [4]. Financial Metrics - The report includes a valuation table for laser companies in the solid-state battery sector, highlighting market capitalization and projected net profits for the years 2024 to 2027 [5].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company experienced a significant decline in performance in 2024, with revenue of 3.197 billion RMB (down 13.11% year-on-year) and a net profit of 134.27 million RMB (down 38.24% year-on-year) [1][4] - Despite the short-term pressure on performance, the expansion of laser applications is expected to drive growth in the laser industry, with the company positioned as a leader through continuous high R&D investment [1][3] - The company's gross margin for 2024 was 20.51%, a decrease of 5.49 percentage points year-on-year, primarily due to accounting policy adjustments and ongoing price pressures [2] Summary by Sections Financial Performance - In Q4 2024, the company achieved revenue of 848 million RMB (down 22.65% year-on-year, up 11.34% quarter-on-quarter) and a net profit of 14.27 million RMB (down 68.43% year-on-year, down 40.84% quarter-on-quarter) [1] - The net profit margin for 2024 was 4.41%, a decrease of 1.71 percentage points year-on-year [2] R&D and Product Development - The company has increased its R&D expense ratio to 11.10%, up 1.91 percentage points year-on-year, launching 13 new products to support future growth in niche application areas [2] Market Opportunities - The expansion of high-power laser applications in industries such as shipping and rail transport, along with advancements in high-end applications like renewable energy, is expected to support the company's performance [3] - Strategic collaborations with companies like Huazhu High-Tech and Aerospace Additive have been established to enhance competitive laser source products for high-precision 3D printing and advanced manufacturing [3] Profit Forecast and Valuation - Due to a sluggish macroeconomic recovery, the profit forecast for 2025-2027 has been adjusted, with expected net profits of 234 million RMB, 298 million RMB, and 327 million RMB respectively [4] - The target price for the company is set at 21.32 RMB, based on a 52 times PE ratio for 2025 [4][8]

Core Viewpoint - The performance of Raycus Laser (300747.SZ) has significantly declined in Q4 2024, with a gross margin of only 2.88%, marking a new low for the company, and a substantial drop in revenue and net profit compared to the previous year [1][3]. Financial Performance - In 2024, Raycus Laser reported a revenue of 3.197 billion yuan, a year-on-year decrease of 13.11%, and a net profit of 29.837 million yuan, down 81.99% [1]. - The company's Q4 performance was particularly poor, with a revenue decline of 22.65% and a loss of 40.1876 million yuan, ending a streak of seven consecutive profitable quarters [1]. - The gross margin for Q4 2024 was the lowest recorded, significantly lower than the previous minimum of 11.24% in Q2 2022 [1]. Sales and Product Performance - Despite a 9.77% increase in shipment volume to 174,700 units in 2024, revenue declined due to a drop in average product prices, estimated to have fallen over 20% [3]. - The revenue contributions from the three main product categories—continuous fiber lasers, pulsed fiber lasers, and ultrafast lasers—were 79.03%, 12.56%, and 2.2%, respectively, with corresponding gross margin declines of 6.27, 1.06, and 18.22 percentage points [3]. Accounts Receivable and Credit Losses - The accounts receivable turnover days worsened from 70.03 days in 2023 to 80.08 days in 2024, indicating increased collection challenges [3]. - Credit impairment losses surged to 42.9957 million yuan in 2024, a significant increase from 7.0875 million yuan in the previous year [3]. International Business and R&D Investment - International revenue grew nearly 40% year-on-year to 190 million yuan, although it still only accounted for 6.16% of total revenue [4]. - R&D expenses increased by 4.97% to 355 million yuan in 2024, with the R&D expense ratio rising from 9.19% in 2023 to 11.1% in 2024 [4]. New Product Development - In 2024, Raycus Laser launched several new products across various sectors, including aerospace, medical lasers, photovoltaic industry, automotive manufacturing, and semiconductors [5]. - The company has established significant collaborations in the automotive sector and achieved a 99.9% qualification rate in its new energy business for battery welding applications [5]. Future Outlook - Raycus Laser anticipates a significant increase in order volume in 2025, with expectations of a business explosion by 2026-2027, although short-term performance remains weak [5]. - Market demand in early 2025 is expected to be low, but there has been a notable recovery in order volume since March [5]. Pricing Trends - Price fluctuations in 2024 were primarily influenced by competitors' financing strategies, with a slight downward trend expected in 2025, though not as severe as in 2024 [6].