Investment Rating - The investment rating for the company is "Buy" and it is maintained [5]. Core Views - The company reported a revenue of 2.29 billion yuan in Q1 2025, a year-on-year decrease of 9.3%. However, the net profit attributable to shareholders reached 90 million yuan, reflecting a significant year-on-year increase of 113.1%. The net profit excluding non-recurring items was 80 million yuan, up 133.7% year-on-year [3][9]. Financial Performance Summary - The gross margin for Q1 2025 was 11.19%, an increase of 4.20 percentage points year-on-year, attributed to optimized production processes and reduced raw material costs [9]. - The total inventory at the end of Q1 2025 was 1.996 billion yuan, down 18.6% year-on-year and 12.9% quarter-on-quarter. Contract assets were 327 million yuan, down 58.3% year-on-year but up 8.8% quarter-on-quarter. Contract liabilities were 393 million yuan, down 29.8% year-on-year and up 6.2% quarter-on-quarter. Accounts receivable stood at 2.998 billion yuan, up 2.1% year-on-year and 26.8% quarter-on-quarter [9]. - The company's asset-liability ratio at the end of Q1 2025 was 51.92%, a decrease of 1.65 percentage points year-on-year and 0.86 percentage points quarter-on-quarter [9]. - The net profit margin for Q1 reached 3.87%, marking a new quarterly high since the company went public. The estimated net profit for the full year 2025 is approximately 360 million yuan, corresponding to a PE ratio of about 30 times [9].

Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Views - The company reported a significant increase in gross margin and rapid profit growth for 2024, with total revenue reaching 10.14 billion yuan, up 9.1% year-on-year, and net profit attributable to shareholders of 230 million yuan, up 85.5% year-on-year [2][4]. - The revenue growth is primarily driven by domestic power grid construction, with domestic revenue at 9.528 billion yuan, up 10.5% year-on-year, while overseas revenue was 369 million yuan, down 8.5% year-on-year [10]. - The gross margin for 2024 was 8.89%, an increase of 1.35 percentage points year-on-year, attributed to a higher proportion of high-margin products and cost reduction measures [10]. - The company expects to deliver a strong performance in 2025, with projected net profit reaching 360 million yuan, corresponding to a PE ratio of approximately 30 times [10]. Financial Performance - For Q4 2024, the company reported revenue of 2.56 billion yuan, down 5.7% year-on-year but up 5.0% quarter-on-quarter, with net profit of 50 million yuan, up 47.3% year-on-year [2][4]. - The company maintained a healthy operating cash flow of 903 million yuan for the year, with Q4 showing a significant increase of 19.1% year-on-year [10]. - The total inventory at the end of 2024 was 2.292 billion yuan, down 12.9% year-on-year, indicating effective inventory management [10]. Cost and Expense Management - The company achieved a reduction in the four expense ratios to 5.39% for the year, with a notable decrease in R&D expense ratio in Q4 [10]. - The gross margin improvement is also linked to production process innovations and optimized procurement strategies [10]. Market Outlook - The company has a substantial backlog of ultra-high voltage orders, indicating a strong market position and potential for growth in 2025 [10].