Investment Rating - The report maintains a "Buy" rating for the company with a target price of 21.66 CNY, based on a projected average PE of 19 times for comparable companies in 2025 [4][8]. Core Insights - The company has adjusted its profit forecasts for 2025-2027, predicting net profits of 364 million CNY, 406 million CNY, and 454 million CNY respectively, reflecting a growth trajectory despite a revenue decline in 2024 [4][11]. - The gross margin has significantly improved, with a reported gross margin of 46.2% in 2024, up 6.5 percentage points year-on-year, indicating better cost management and pricing power [11]. - The company is actively pursuing opportunities in recycled materials, with successful project deliveries in chemical recycling technology, which is expected to expand into polyester recycling [11]. - The industrial AI solutions segment has shown resilience, achieving a 12% revenue growth despite overall revenue decline, indicating a strong demand for digital transformation in the industry [11]. Financial Summary - The company's revenue for 2023 was 1,250 million CNY, with a projected decline to 1,074 million CNY in 2024, followed by a recovery to 1,206 million CNY in 2025 [6]. - The net profit for 2023 was 290 million CNY, expected to rise to 318 million CNY in 2024, and further to 364 million CNY in 2025, reflecting a consistent growth pattern [6]. - The gross margin is projected to remain stable at 47.3% from 2025 to 2027, while the net profit margin is expected to hover around 30% [6][11].

Core Insights - The company reported a significant increase in gross margin despite a decline in revenue for 2024, with a gross margin of 46.2%, up 6.5 percentage points year-on-year [1] - The company is actively expanding its recycled materials technology, achieving successful project deliveries, including a chemical recycling nylon project [2] - The company adjusted its profit forecasts for 2025-2027, predicting net profits of 3.64 billion, 4.06 billion, and 4.54 billion yuan respectively, maintaining a buy rating with a target price of 21.66 yuan [3] Financial Performance - For 2024, the company achieved total revenue of 1.07 billion yuan, a year-on-year decrease of 14.1%, while net profit attributable to shareholders was 320 million yuan, an increase of 9.6% [1] - In Q1 2025, the company reported revenue of 260 million yuan, down 16.2% year-on-year, with a net profit of 80 million yuan, up 1.7% [1] - The gross margin for Q1 2025 was 45.9%, reflecting an increase of 8.4 percentage points year-on-year [1] Business Development - The company is focusing on chemical recycling technology, with successful project deliveries in the recycled materials sector, including a project with Jiangsu Jiahua [2] - The company’s industrial AI solutions segment saw a 12% revenue growth in 2024, despite overall revenue decline [2] - The completion of the "Textile Industry Big Data Factory Project" supports the evolution of the company's intelligent solutions in the chemical fiber sector [2]