Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 13.2 CNY [2][10]. Core Views - The company's revenue for 2024 is reported at 2.83 billion CNY, a decrease of 11.7% year-on-year, while the net profit attributable to shareholders is 354 million CNY, down 14.4% year-on-year. However, Q4 2024 shows a revenue increase of 2.1% year-on-year, and a net profit increase of 42.6% year-on-year [2][10]. - For Q1 2025, the company achieved a revenue of 910 million CNY, an increase of 6.7% year-on-year, while the net profit decreased by 9.2% year-on-year [2][10]. - The company is expected to see a recovery in performance due to the lifting of import quotas in Indonesia and potential growth in the U.S. market [10]. Financial Summary - **2024 Financial Performance**: Total revenue of 2.83 billion CNY, net profit of 354 million CNY, and a gross margin of 27.8%, down 1.9 percentage points year-on-year [5][10]. - **2025 and Beyond Projections**: Expected revenue growth of 10.5% in 2025, with net profit projected to increase by 6.5% [5][10]. - **Earnings Per Share (EPS)**: Projected EPS for 2025 is 0.98 CNY, increasing to 1.22 CNY by 2027 [5][10]. Market Performance - The company has shown resilience in a challenging market environment, with a focus on expanding its overseas markets and maintaining a stable operational performance [10]. - The report highlights that the company is committed to a dividend payout ratio of no less than 50% for 2025, indicating confidence in future cash flows [10].

Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][6]. Core Insights - In 2024, the company achieved a total revenue of 10.506 billion, representing a year-on-year growth of 28.89%. The net profit attributable to shareholders was 461 million, with a year-on-year increase of 27.45% [6][2]. - The company is experiencing strong growth in emerging businesses, particularly in the aviation and new energy sectors, which are expected to drive future revenue [6][2]. - The report highlights a positive outlook for the company's value chain enhancement, driven by three key business segments: aviation power systems, motorcycle engines, and general machinery [6][2]. Financial Performance Summary - **Revenue and Profitability**: - Total revenue for 2024 is projected at 10.506 billion, with a growth rate of 28.9% for 2025 and 11.7% for 2026 [2][7]. - Net profit for 2024 is estimated at 461 million, with a forecasted increase to 630 million in 2025 and 725 million in 2026, reflecting growth rates of 36.6% and 15.0% respectively [2][7]. - **Earnings Per Share (EPS)**: - EPS is expected to rise from 0.40 in 2024 to 0.55 in 2025 and 0.63 in 2026, with a corresponding decrease in price-to-earnings (P/E) ratio from 53 to 39 and then to 34 [2][7]. - **Dividends**: - The company plans to distribute a cash dividend of 2.00 per 10 shares, totaling 229 million, which represents a payout ratio of 49.64% [6][2]. Business Segment Performance - **General Machinery**: - Sales of general power and terminal products reached 483,450 units, with revenue of 5.22 billion, marking a year-on-year increase of 35.4% [6][2]. - **Motorcycle Engine Business**: - The motorcycle engine segment sold 298,520 units, generating revenue of 3.82 billion, reflecting a year-on-year growth of 13.8% [6][2]. - **Emerging Businesses**: - The aviation power segment reported revenue of 1.6 billion, a significant increase of 71.74%, while the new energy business achieved 5.79 billion in revenue, up 334.84% [6][2].

Investment Rating - The report maintains an investment rating of "Leading the Market-A" for the other general machinery industry, indicating an expected growth rate exceeding the benchmark index by over 10% [1][7]. Core Insights - The 2025 Government Work Report emphasizes the continuous promotion of the "Artificial Intelligence +" initiative, which aims to enhance industrial transformation through AI, develop AI terminals such as smart robots and connected vehicles, and accelerate AI applications across various sectors including low-altitude, education, and healthcare. This push is expected to significantly increase demand for computing power, positioning intelligent computing centers as a key strategic resource in global competition [1]. - The launch of the first general AI agent, Manus, by Chinese startup Monica showcases advancements in AI technology, achieving state-of-the-art performance in benchmark tests. This development is anticipated to further expand the application scenarios for AI agents, thereby stimulating demand for computing power [2]. - Major internet companies, including Alibaba, have significantly increased their capital expenditure plans, with Alibaba announcing a capital expenditure of 31.775 billion yuan for Q3 FY25, an 80% quarter-on-quarter increase. The company plans to invest over 380 billion yuan in cloud and AI infrastructure over the next three years, which is expected to surpass the total investment of the past decade [3]. Summary by Sections Industry Performance - The other general machinery sector has shown strong market performance over the past year, driven by advancements in AI and increased capital expenditures from major tech companies [1][3]. Investment Opportunities - The report highlights investment opportunities in AIDC (Artificial Intelligence Data Center) equipment, driven by the growing demand for computing power and the expansion of data center infrastructure [1][3]. - Specific companies in the supply chain for AIDC equipment are recommended for attention, including engine manufacturers and OEMs, as well as liquid cooling equipment suppliers [4].