Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - Q1 2025 performance met market expectations with revenue of 150 million yuan, a 22% increase quarter-on-quarter and a 16% decrease year-on-year. Net profit attributable to shareholders was 24 million yuan, showing a significant increase of 2153% quarter-on-quarter but a 64% decrease year-on-year [8] - The gross margin for Q1 was 64.9%, reflecting a 9.3 percentage point increase quarter-on-quarter and a 4.7 percentage point decrease year-on-year. The net profit margin was 16.0%, up 15.1 percentage points quarter-on-quarter but down 21.1 percentage points year-on-year [8] - The company expects revenue from lithium battery equipment to reach 150 million yuan in 2025, driven by the recovery of downstream battery manufacturers. The revenue from accessories and consumables is projected to grow by 50% to 270 million yuan [8] - The new business segment, including high-voltage harnesses and IGBT, is anticipated to see significant growth, with expected revenue doubling in 2025-2026. The company has secured orders from major harness manufacturers and is expected to benefit from its proprietary welding technology [8] Financial Summary - The company forecasts total revenue of 759.84 million yuan in 2025, representing a year-on-year growth of 29.99%. The net profit attributable to shareholders is expected to be 122.06 million yuan, a 42.15% increase year-on-year [1][9] - Earnings per share (EPS) is projected to be 1.06 yuan in 2025, with a price-to-earnings (P/E) ratio of 46.70 based on the latest diluted shares [1][9] - The report estimates a net profit of 4.5 billion yuan for 2027, with a compound annual growth rate (CAGR) of 42% from 2025 to 2027 [8]