Core Insights - The company reported a total revenue of 3.573 billion and a net profit attributable to shareholders of 252 million for 2024, reflecting a year-on-year decline of 7% and 44% respectively [1] - The company experienced a revenue increase of 15% in Q4 2024 but a significant drop in net profit by 32% [2] - For Q1 2025, the company anticipates a revenue of 859 million, with a net profit increase of 38% year-on-year [1][3] Revenue Breakdown - The revenue from the engraving machine and water cooling heat dissipation business faced pressure, leading to a 7% decline in total revenue for 2024 [2] - Revenue from smart control components, innovative consumer electronics, automotive electronics, and health environment products showed varied performance, with declines of 14%, 2%, and 53% respectively, while automotive electronics grew by 19% [2] - The innovative consumer electronics segment is expected to see a significant decline in engraving machine revenue, while the e-bike segment is projected to grow [2] Profitability Analysis - The net profit margin and the net profit margin excluding non-recurring items decreased by 4.6 and 3.4 percentage points year-on-year respectively [2] - The company’s expenses in sales, management, R&D, and finance increased year-on-year, with management expenses rising due to the absence of a previous year's stock incentive reversal [2] Future Outlook - The company is expected to see a recovery in engraving machine business and stable growth in e-bike and automotive electronics in 2025 [3] - The company’s global production capacity and strong R&D capabilities are expected to enhance its competitive advantage [4] - The company has announced an incentive plan with targets for 2025 revenue growth of 25% to 50%, primarily driven by the e-cigarette and automotive electronics segments [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company is expected to reach a turning point in performance, with an anticipated gradual increase in electronic cigarette orders [4] - For 2024, the company is projected to achieve total revenue of 3.573 billion yuan, a year-on-year decrease of 7%, and a net profit attributable to shareholders of 252 million yuan, down 44% year-on-year [2][4] - The fourth quarter of 2024 is expected to show a revenue increase of 15% year-on-year, while the first quarter of 2025 is projected to see a revenue increase of 12% year-on-year [2][4] Financial Performance Summary - In 2024, the company’s revenue is expected to be 3.573 billion yuan, with a net profit of 252 million yuan and a net profit excluding non-recurring items of 238 million yuan, reflecting year-on-year declines of 7%, 44%, and 38% respectively [2][4] - For Q4 2024, the expected revenue is 1.034 billion yuan, with a net profit of 80 million yuan and a net profit excluding non-recurring items of 94 million yuan, showing year-on-year changes of +15%, -32%, and -8% respectively [2][4] - In Q1 2025, the expected revenue is 859 million yuan, with a net profit of 77 million yuan and a net profit excluding non-recurring items of 74 million yuan, reflecting year-on-year increases of +12%, +38%, and +71% respectively [2][4] Business Segment Analysis - The company’s revenue from the intelligent control components and innovative consumer electronics is expected to decline by 14% and 2% respectively in 2024, while automotive electronics are projected to grow by 19% [4] - The electronic cigarette business is anticipated to improve gradually, with orders expected to increase as labor issues in the Malaysian base are resolved [4] - The automotive electronics segment is expected to maintain stable growth, contributing positively to overall revenue [4] Future Outlook - The company aims for a revenue increase of 25% to 50% in 2025, targeting a revenue range of 4.5 to 5.4 billion yuan, primarily driven by the electronic cigarette and automotive electronics segments [4] - The company is expected to achieve net profits of 500 million yuan, 690 million yuan, and 870 million yuan from 2025 to 2027, with corresponding price-to-earnings ratios of 24, 18, and 14 times [4]