Investment Rating - The report maintains a "Recommended" rating for the company [5][8]. Core Views - The company's profitability remains stable, with a significant increase in backlog orders. In Q1 2025, the company reported revenues of 1.559 billion yuan, a year-on-year decrease of 14.09% and a quarter-on-quarter decrease of 48.80%. The net profit attributable to the parent company was 110 million yuan, down 28.46% year-on-year and 46.06% quarter-on-quarter [1][2]. - The company's gross margin and net margin for Q1 2025 were 18.90% and 6.83%, respectively, showing stability despite a slight increase in expense ratios due to overseas market expansion [2][3]. - The total backlog orders reached 7.4 billion yuan, with a 59.14% increase compared to the previous year. The tracking brackets accounted for 5.2 billion yuan, representing 70.27% of the total backlog [3][4]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 1.559 billion yuan, with a year-on-year decline of 14.09% and a quarter-on-quarter decline of 48.80%. The net profit attributable to the parent company was 110 million yuan, down 28.46% year-on-year and 46.06% quarter-on-quarter [1]. - The company's gross margin was 18.90%, and the net margin was 6.83%, indicating stable profitability [2]. Order Backlog - As of the announcement date, the total backlog orders amounted to 7.4 billion yuan, with tracking brackets contributing 5.2 billion yuan (70.27% of total orders) and fixed brackets contributing 1.9 billion yuan (25.68% of total orders). This represents a 59.14% increase in total backlog orders compared to the previous year [3]. Market Outlook - The company is expected to benefit from the large-scale wind and solar base projects and the marketization of electricity trading. The unique design of the tracking system is anticipated to enhance project safety and increase revenue by approximately 28.51% compared to fixed brackets [4]. - The company is projected to achieve revenues of 10.618 billion yuan, 12.200 billion yuan, and 14.001 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 816 million yuan, 1.055 billion yuan, and 1.277 billion yuan [5][7].

Core Insights - The company achieved steady growth in 2024, focusing on its core businesses of connectors and photovoltaic brackets, resulting in revenue and net profit increases [1] - Annual revenue reached 6.097 billion yuan, a year-on-year increase of 20.51%, while net profit was 124 million yuan, a slight increase of 1.63% [1] - The company plans to distribute a cash dividend of 1 yuan per 10 shares, totaling 19.4 million yuan, with a dividend rate of approximately 15.63% [1] Business Segments - The photovoltaic bracket business generated revenue of 3.453 billion yuan, a year-on-year increase of 10.07%, accounting for 56.64% of total revenue [2] - The connector business saw significant growth, with revenue of 2.464 billion yuan, a year-on-year increase of 38.10%, driven by demand from 5G and data centers [2] - Overseas revenue accounted for 52.13% of total revenue, reflecting a year-on-year increase of 5.18 percentage points, indicating the effectiveness of the company's globalization strategy [2] Research and Development - The company invested 198 million yuan in R&D, representing 3.25% of total revenue, with 707 R&D personnel, making up 10% of the total workforce [2] - Ongoing development of high-tech products, such as the NGSFP-DD400G high-speed IO port connector and 2.4 series fixed brackets, enhances the product line and market competitiveness [2] Competitive Position - The company is one of the few in China with complete capabilities in precision die-casting, thermal components, and electroplating for connector production, which is a core competitive advantage [3] - The company has successfully developed 5GSFP and SFP+ series products, achieving industry-leading levels in technology R&D and lean production [3] - The company has received multiple patents, including 77 invention patents, showcasing its commitment to innovation and maintaining a leading position in the industry [3] Long-term Strategy - A restricted stock incentive plan was launched to attract and retain core talent, granting 6.8097 million shares at a price of 18.52 yuan per share [4] - The company’s subsidiary, Leqing Yihua New Energy Technology Co., focuses on manufacturing and selling core components for photovoltaic tracking brackets, establishing a strong position in the international market [4] - Future plans include deepening the connector business, expanding market share, and enhancing the brand image while increasing R&D efforts for high-tech products [5]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [5][8]. Core Insights - The company reported a significant increase in revenue and profit for 2024, with total revenue reaching 9.026 billion yuan, up 41.25% year-on-year, and net profit attributable to shareholders at 632 million yuan, up 83.03% year-on-year [2]. - The company's tracking bracket segment saw revenue growth of 112.10% year-on-year, with a gross margin of 19.67% and a shipment volume of 17.41 GW, reflecting strong market demand and an increase in market share [3]. - The establishment of a global supply chain system has solidified the company's first-mover advantage in overseas markets, with multiple production bases and regional headquarters enhancing operational efficiency [4]. Financial Forecast - Revenue projections for 2025, 2026, and 2027 are estimated at 10.526 billion yuan, 12.109 billion yuan, and 13.911 billion yuan, respectively, with corresponding net profits of 818 million yuan, 1.057 billion yuan, and 1.278 billion yuan [5][7]. - The company is expected to maintain a strong growth trajectory, with net profit growth rates projected at 29.6% for 2025 and 29.1% for 2026 [12][13].