Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected increase of over 15% relative to the CSI 300 index within the next six months [31]. Core Views - The company is expected to experience a turning point in its fundamentals due to potential increases in military demand and military trade opportunities, which could catalyze revenue growth [14]. - The company reported significant losses in 2024, with total revenue of 4.569 billion yuan, a year-on-year decline of 25.29%, and a net loss attributable to shareholders of 327 million yuan [5][6]. - The company has set an ambitious revenue target of 8.7 billion yuan for 2025, reflecting a growth expectation of 90.41% compared to 2024 [15]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 45.69 billion yuan, down 25.29% year-on-year, with a net loss of 3.27 billion yuan compared to a profit of 828 million yuan in the previous year [5][6]. - The first quarter of 2025 saw revenue of 6.2 billion yuan, a decrease of 30.06% year-on-year, with a net loss of 1.29 billion yuan, marking a decline of 843.67% [5][6]. Business Segments - The special equipment segment generated revenue of 23.93 billion yuan, a decline of 23.93%, accounting for 52.38% of total revenue [12]. - The superhard materials segment reported revenue of 17.64 billion yuan, down 23.33%, representing 38.6% of total revenue [12]. - The specialized automotive segment's revenue decreased by 3.81% to 4.12 billion yuan [12]. Profitability Metrics - The company's gross margin for 2024 was 15.24%, a decrease of 17.01 percentage points year-on-year, while the net margin was -8.05%, down 21.59 percentage points [8]. - The gross margin for the special equipment segment was 9.61%, down 23.92 percentage points, and for the superhard materials segment, it was 25.88%, down 9.77 percentage points [13]. Future Outlook - The company anticipates a recovery in military demand, which is expected to positively impact its performance in the coming years [14]. - The projected revenues for 2025 to 2027 are 6.872 billion yuan, 8.970 billion yuan, and 10.735 billion yuan, respectively, with corresponding net profits of 279 million yuan, 408 million yuan, and 558 million yuan [16][17].

Investment Rating - The investment rating for the company is "Accumulate" [4] Core Views - The company plans to achieve a revenue growth of 90% year-on-year in 2025, aiming to turn losses into profits [2][4] - The special equipment sector is expected to become a new growth point, benefiting from the increase in demand for smart ammunition [3][4] - The company is a leader in the ultra-hard materials market and is expected to maintain its market position while benefiting from the growth in demand for photovoltaic diamond wire [3] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 4.57 billion yuan, a decrease of 25% year-on-year, and a net profit of -327 million yuan, a decline of 140% [1][4] - The revenue from the special equipment segment was 2.39 billion yuan, down 29% year-on-year, with a gross margin of 9.61%, a decrease of 23.92 percentage points [1] - The ultra-hard materials segment generated 1.76 billion yuan in revenue, down 23% year-on-year, with a gross margin of 25.88%, a decrease of 9.77 percentage points [1] Future Projections - The company forecasts a revenue of 8.72 billion yuan in 2025, representing a 91% increase from 2024 [4] - Expected net profits for 2025-2027 are projected at 325 million yuan, 422 million yuan, and 527 million yuan respectively, with growth rates of 30% and 25% in 2026 and 2027 [4] - The price-to-earnings ratio (P/E) is projected to be 71, 55, and 44 for 2025, 2026, and 2027 respectively [4] Market Position - The company is the only publicly listed platform for ammunition under the Weaponry Group and is involved in the production of various munitions [3] - The company’s subsidiary, North Red Sun, has achieved profitability, indicating improvements in core product pricing and internal operations [3] - The demand for long-range rocket artillery is expected to grow due to its significance in modern warfare, particularly highlighted by the ongoing Russia-Ukraine conflict [3]

Investment Rating - The investment rating for the company is "Accumulate" [4] Core Views - The company plans to achieve a revenue growth of 90% year-on-year in 2025, aiming to turn losses into profits [2][4] - The special equipment sector is expected to become a new growth point, benefiting from the increase in demand for smart ammunition [3][4] - The company is a leader in the ultra-hard materials market and is expected to maintain its market position while benefiting from the growth in demand for photovoltaic diamond wire [3] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 4.57 billion yuan, a decrease of 25% year-on-year, and a net profit of -327 million yuan, a decline of 140% [1][4] - The revenue from the special equipment segment in 2024 was 2.39 billion yuan, down 29% year-on-year, with a gross margin of 9.61%, a decrease of 23.92 percentage points [1] - The ultra-hard materials segment generated a revenue of 1.764 billion yuan, down 23% year-on-year, with a gross margin of 25.88%, a decline of 9.77 percentage points [1] Future Projections - The company forecasts a revenue of 8.721 billion yuan in 2025, representing a 91% increase from 2024 [4] - Expected net profits for 2025, 2026, and 2027 are projected to be 325 million yuan, 422 million yuan, and 527 million yuan respectively, with growth rates of 30% and 25% in the following years [4] - The price-to-earnings ratio (P/E) for 2025, 2026, and 2027 is estimated to be 71, 55, and 44 respectively [4] Market Position - The company is the only publicly listed platform for ammunition under the Weaponry Group and is involved in the production of various munitions including large-caliber shells and rockets [3] - The company’s subsidiary, North Red Sun, has achieved profitability, indicating improvements in core product pricing and internal operations [3]