Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 5.11 yuan [6]. Core Views - The company experienced a revenue decline of 24.57% year-on-year in 2024, with total revenue of 2.652 billion yuan and a net profit attributable to shareholders of 126 million yuan, down 64.25% year-on-year. The first quarter of 2025 showed some recovery with a revenue of 483 million yuan, a decrease of 33.90% year-on-year, but a net profit of 30 million yuan, indicating a turnaround from losses [1][4]. Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 2.652 billion yuan, a decrease of 24.57% year-on-year. The net profit attributable to shareholders was 126 million yuan, down 64.25% year-on-year. The first quarter of 2025 saw a revenue of 483 million yuan, a year-on-year decrease of 33.90%, but a net profit of 30 million yuan, indicating a recovery from previous losses [1][5]. Sales and Margins - The sales volume for seamless and welded pipes in 2024 was 43,500 tons and 26,600 tons, respectively, showing declines of 15.07% and 24.02% year-on-year. In Q1 2025, the sales volume for seamless and welded pipes was 10,600 tons and 6,300 tons, respectively, with a total sales volume of 16,900 tons, reflecting a 4.83% increase quarter-on-quarter [2]. - The gross margin improved in Q1 2025, with the gross margin for seamless pipes increasing by 4.1% and for welded pipes decreasing by 1.1% compared to the previous quarter. The overall gross margin for 2024 was 15.16%, down 1.50 percentage points year-on-year, while in Q1 2025, it was 16.28%, down 2.06 percentage points year-on-year but up 5.37 percentage points quarter-on-quarter [2]. Future Outlook - The company is focusing on maintaining high demand for thermal power boilers, with significant growth in revenue from electric power equipment and natural gas, which increased by 40.79% and 170.29% year-on-year, respectively. The company is also actively developing new application markets, including nuclear power and coal liquefaction, and expanding into international markets [3][4]. - The company has established itself as a qualified supplier for several major domestic and international companies, ensuring product quality through lean production practices [3]. Earnings Forecast - The company is expected to recover its profitability, with projected net profits of 172 million yuan, 192 million yuan, and 215 million yuan for 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios are forecasted to be 17x, 15x, and 13x [4][5].