Core Viewpoint - The company reported a steady growth in revenue and significant improvement in net profit for 2024 and Q1 2025, indicating a positive trend in operational efficiency and profitability [1][4]. Financial Performance - In 2024, the company achieved operating revenue of 78.584 billion yuan, a year-on-year increase of 5.01%, and a net profit attributable to shareholders of 3.614 billion yuan, up 22.21% [1]. - For Q1 2025, the company reported operating revenue of 15.858 billion yuan, a year-on-year increase of 3.85%, and a net profit of 1.127 billion yuan, showing a remarkable growth of 180.99% [1][4]. Profitability Metrics - The gross profit margin for 2024 was 10.20%, a decrease of 0.37 percentage points year-on-year, while the net profit margin improved to 4.91%, an increase of 0.96 percentage points [2]. - In Q4 2024, the gross profit margin was 12.20%, reflecting a year-on-year increase of 2.55 percentage points, and the net profit margin reached 6.69%, up 5.14 percentage points year-on-year [2]. Cost Efficiency - The company experienced a decline in various expense ratios, contributing to an increase in net profit margin that outpaced the growth in gross profit margin [3]. Future Outlook - The company anticipates steady revenue growth and improved profitability in the coming quarters, driven by increased production efficiency and a higher proportion of high-margin ship deliveries [4]. - As of 2024, the company holds a substantial backlog of orders, with 154 civil ship orders totaling 103.9 billion yuan and 296 repair orders valued at 2.073 billion yuan [4]. Investment Recommendation - The company is projected to achieve operating revenues of 88.8 billion yuan, 102.893 billion yuan, and 112.861 billion yuan for 2025-2027, with respective year-on-year growth rates of 13.00%, 15.87%, and 9.69% [5]. - The net profit for the same period is expected to be 6.937 billion yuan, 10.077 billion yuan, and 13.031 billion yuan, with growth rates of 91.95%, 45.25%, and 29.31% respectively [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company reported a significant increase in net profit for 2024, with a year-on-year growth of approximately 78%, and a staggering 349% growth in Q1 2025 [1] - The growth in revenue and profit is attributed to the rising global shipbuilding market and strong performance in the diesel engine segment, with new orders remaining high [1][4] - The company is well-positioned to benefit from the upturn in the shipbuilding cycle and the increasing demand for marine engines [4][10] Summary by Sections Financial Performance - In 2024, the company achieved an operating revenue of 51.697 billion yuan, a year-on-year increase of 14.62%, and a net profit of 1.391 billion yuan, up 78.43% [1] - For Q1 2025, the company reported an operating revenue of 12.311 billion yuan, a 7.98% increase year-on-year, and a net profit of 396 million yuan, reflecting a 348.96% growth [3] - The gross profit margin for 2024 increased by 1.53 percentage points, while Q1 2025 saw a 5.53 percentage point increase in gross profit margin [3] Business Segments - The shipbuilding industry segment generated revenue of 23.147 billion yuan in 2024, with a completion rate of 127.1% for annual plans [2] - The application industry achieved revenue of 22.060 billion yuan, with new contracts totaling 21.755 billion yuan [2] - The emerging industry segment, particularly in energy-saving and emission-reduction equipment, saw a 60.92% increase in new orders for wind power operations [2] Market Outlook - The shipbuilding cycle is on an upward trend, with demand for marine engines expected to rise due to supply constraints and increasing ship prices [4][9] - The company is enhancing its after-sales service capabilities for diesel engines, with a projected revenue of nearly 1.5 billion yuan from after-sales services in 2024, marking a 25% increase [9][10] - The development of AIDC is anticipated to drive demand for gas turbines, with the company being one of the few domestic manufacturers in this sector [10] Earnings Forecast and Valuation - Revenue projections for 2025-2027 are approximately 60 billion, 68 billion, and 75.7 billion yuan, with year-on-year growth rates of 16%, 13%, and 11% respectively [11] - The forecasted net profit for the same period is expected to be 2.135 billion, 3.007 billion, and 3.772 billion yuan, with growth rates of 54%, 41%, and 25% respectively [11] - The company is valued at a PE ratio of approximately 23, 16, and 13 for the years 2025, 2026, and 2027 [11]