Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of 5% to 15% over the next 6 to 12 months [5][12]. Core Views - The company reported a revenue of 569 million yuan in Q1 2025, a year-on-year increase of 3.8%, while the net profit attributable to shareholders decreased by 11.78% to 61 million yuan [2]. - The machine tool industry is facing intense competition and price pressure, leading to a decline in profit margins. The company's gross margin in Q1 2025 was 21.11%, down 4.84 percentage points year-on-year, and the net margin decreased by 1.9 percentage points to 10.78% [3]. - Positive industry data for January and February 2025 indicates a potential recovery, with a 12.1% year-on-year revenue growth in the metal cutting machine tool sector and a 26.2% increase in new orders [3]. - The company is expanding its production capacity with a new phase expected to launch in the first half of 2025, which will introduce new products with promising growth prospects [4]. Summary by Sections Performance Summary - Q1 2025 revenue was 569 million yuan, up 3.8% year-on-year; net profit was 61 million yuan, down 11.78% [2]. Operational Analysis - The machine tool industry saw a revenue decline of 5.2% in 2024, with total profits down 76.6% due to competitive pressures [3]. - The company's gross margin decreased to 21.11% in Q1 2025, reflecting the industry's pricing challenges [3]. - Positive trends in early 2025 suggest potential recovery in subsequent quarters, supported by government economic stimulus measures [3]. Capacity and Product Development - The company is progressing with its fourth phase of capacity expansion, expected to be operational in H1 2025, which will enhance its product offerings [4]. Profit Forecast and Valuation - Projected net profits for 2025, 2026, and 2027 are 370 million, 427 million, and 483 million yuan, respectively, with corresponding PE ratios of 18X, 15X, and 13X [5].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5][12]. Core Views - The company reported a revenue of 569 million yuan in Q1 2025, a year-on-year increase of 3.8%, but the net profit attributable to shareholders decreased by 11.78% to 61 million yuan [2]. - The machine tool industry is facing intense competition and price pressure, leading to a decline in profit margins. The gross margin for Q1 2025 was 21.11%, down 4.84 percentage points year-on-year, while the net margin decreased by 1.9 percentage points to 10.78% [3]. - Positive industry data for January and February 2025 suggests potential recovery, with a 12.1% year-on-year revenue growth in the metal cutting machine tool sector and a 26.2% increase in new orders [3]. - The company is expanding its production capacity with a new phase expected to launch in the first half of 2025, which will introduce new products with promising growth prospects [4]. Summary by Sections Performance Summary - In Q1 2025, the company achieved a revenue of 569 million yuan, reflecting a 3.8% increase year-on-year, while the net profit attributable to shareholders was 61 million yuan, down 11.78% [2]. Operational Analysis - The machine tool industry experienced a revenue decline of 5.2% in 2024, with total profits dropping by 76.6% due to fierce competition and shrinking profit margins. The company's gross margin fell to 21.11% in Q1 2025, and the net margin decreased to 10.78% [3]. - Industry data for early 2025 shows improvement, with a 12.1% revenue growth in the metal cutting machine tool sector and a 26.2% increase in new orders, indicating a potential recovery in the following quarters [3]. Capacity Expansion and Product Development - The company is progressing with its fourth phase of capacity expansion, expected to be operational in the first half of 2025, which will allow for the introduction of new products aimed at the robotics and machining markets [4]. Profit Forecast and Valuation - The company is projected to achieve net profits of 370 million yuan, 427 million yuan, and 483 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 18X, 15X, and 13X [5].