Core Insights - The company reported a slight increase in revenue for 2024, achieving 3.352 billion yuan, a year-on-year growth of 0.85%, but net profit decreased by 14.19% to 523 million yuan [1] - In Q1 2025, the company experienced a revenue decline of 2.17% to 740 million yuan, while net profit increased by 14.29% to 99 million yuan [1] - The machine tool industry is facing low demand and increased competition, leading to a projected 6.3% revenue growth but a 3.8% decline in total profits for the year [1] Financial Performance - For 2024, the company’s comprehensive gross margin slightly decreased to 27.34%, down 0.82 percentage points year-on-year, and further declined to 25.93% in Q1 2025 [2] - The gross margins for different product lines in 2024 were as follows: horizontal machining centers at 37.04% (up 2.52 percentage points), gantry machining centers at 27.60% (down 1.80 percentage points), and vertical machining centers at 19.39% (down 1.28 percentage points) [2] - The company’s expenses increased, with sales, management, R&D, and financial expense ratios rising by a total of 1.17 percentage points in 2024 [2] Industry Outlook - The machine tool industry is expected to see a recovery in demand in 2025, driven by economic stimulus policies and increased domestic demand [2] - The company is focusing on high-end product development and expanding production capacity, with a new intelligent production base set to commence operations in Q4 2024 [2] - The company is positioned as a leader in the domestic machine tool market, with long-term growth potential supported by new technologies and market expansion [2] Investment Projections - The company is projected to achieve net profits of 611 million yuan, 717 million yuan, and 850 million yuan for the years 2025 to 2027, with corresponding EPS of 1.17, 1.37, and 1.63 yuan [3] - The projected PE ratios for the same period are 17 times, 14 times, and 12 times, indicating a favorable investment outlook [3]