Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 1.139 billion in 2024, representing a year-on-year growth of 24.17%. The net profit attributable to the parent company was 414 million, up 23.56% year-on-year. However, in Q1 2025, revenue decreased by 2.48% to 241 million, and net profit dropped significantly by 45.23% to 63 million [2][4][6]. Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of 1.139 billion, with a year-on-year increase of 24.17%. The net profit attributable to the parent company was 414 million, reflecting a growth of 23.56%. The non-recurring net profit was 389 million, which is a slight increase of 0.93% [2][4]. - For Q1 2025, the company reported a revenue of 241 million, a decrease of 2.48% year-on-year. The net profit attributable to the parent company was 63 million, down 45.23%, and the non-recurring net profit was 55 million, a decrease of 50.79% [2][4]. Business Development - The company is transitioning towards becoming a comprehensive solution provider for new materials, focusing on aerospace and high-end equipment. It is advancing multiple product lines, including special functional materials, acoustic materials, and ceramic-based composite materials [6]. - The revenue from special functional materials in 2024 was 1.023 billion, an increase of 15.27%. The acoustic metamaterials business saw a significant growth of 143.33%, while the aerospace components business grew by 461.84% [6][11]. Cost and Margin Analysis - The gross margin for 2024 was 50.69%, a decrease of 7.09 percentage points year-on-year. In Q1 2025, the gross margin further declined to 40.79%, down 17.98 percentage points year-on-year [11]. - The increase in R&D expenses and production costs has led to fluctuations in profitability. The R&D expense ratio in Q1 2025 was 12.76%, an increase of 7.26 percentage points year-on-year [11].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a steady growth in Q1 2025, achieving a revenue of 1.401 billion, a year-on-year increase of 6.38% and a quarter-on-quarter increase of 12.01%. The net profit attributable to the parent company was 358 million, reflecting a year-on-year growth of 1.93% and a quarter-on-quarter growth of 48.64% [2][4][12]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 1.401 billion, with a year-on-year growth of 6.38% and a quarter-on-quarter growth of 12.01%. The net profit attributable to the parent company was 358 million, with a year-on-year increase of 1.93% and a quarter-on-quarter increase of 48.64%. The net profit excluding non-recurring items was 352 million, showing a year-on-year growth of 0.38% and a quarter-on-quarter growth of 47.79% [2][4][12]. Business Expansion and Inventory Management - The company is actively increasing inventory and expanding production to ensure product delivery, with an inventory balance of 1.435 billion at the end of Q1, a growth of 12.54% compared to the beginning of the period. The construction in progress balance was 137 million, up 28.89% from the beginning of the period [6][12]. Business Segments - The aerospace new materials business generated a revenue of 1.390 billion in Q1 2025, a year-on-year increase of 6.47%, while the equipment business achieved a revenue of 12.597 million, a significant year-on-year increase of 242.20% [12]. Profitability Metrics - The gross margin for Q1 2025 was stable at 41.21%, with a slight year-on-year decrease of 0 percentage points and a quarter-on-quarter increase of 1.44 percentage points. The net profit margin was 25.73%, reflecting a year-on-year decrease of 1.14 percentage points but a quarter-on-quarter increase of 5.93 percentage points [12].

Core Viewpoint - The CSI High-end Manufacturing Theme Index (CS High-end Manufacturing, 930820) has shown a recent upward trend, increasing by 1.76% to 5605.46 points, despite a significant decline over the past month and year-to-date [1]. Group 1: Index Performance - The CSI High-end Manufacturing Theme Index has decreased by 14.97% over the past month, 6.00% over the past three months, and 10.42% year-to-date [1]. - The index is based on a sample of listed companies in sectors such as aerospace, defense, communication equipment, semiconductors, biotechnology, pharmaceuticals, electronic devices, automotive, and computers, providing diverse investment options [1]. Group 2: Index Holdings - The top ten weighted stocks in the CSI High-end Manufacturing Theme Index include CATL (5.07%), BYD (2.67%), Hengrui Medicine (1.96%), SMIC (1.63%), Northern Huachuang (1.33%), Luxshare Precision (1.32%), BOE Technology (1.25%), Huichuan Technology (1.22%), Haiguang Information (1.19%), and Mindray (1.18%) [1]. - The market share of the index holdings is distributed as follows: Shenzhen Stock Exchange (51.22%), Shanghai Stock Exchange (48.72%), and Beijing Stock Exchange (0.06%) [1]. Group 3: Industry Composition - The industry composition of the index holdings is as follows: Industrial (36.79%), Information Technology (34.07%), Healthcare (15.25%), Consumer Discretionary (9.37%), Communication Services (4.30%), and Energy (0.23%) [2]. - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2]. Group 4: Tracking Funds - Public funds tracking the CS High-end Manufacturing Index include the Fortune CSI High-end Manufacturing Index Enhanced C and A [3].