Investment Rating - The investment rating for the company is "Accumulate" with a target price not specified [8] Core Views - The company achieved a total revenue of 11.967 billion yuan in 2024, a decrease of 7.16% year-on-year, while the net profit attributable to shareholders was 450 million yuan, an increase of 24.31% year-on-year [1] - The core business of piston compressors saw a revenue increase of 12.04% year-on-year, with sales volume reaching 84.25 million units, a growth of 16% [2] - The company aims for a sales revenue of 11.8 billion yuan in 2025, with a target of 12.5 billion yuan, reflecting a year-on-year change of -1% to +4% [3] Financial Performance - The gross margin for 2024 was 12.77%, a decrease of 0.45 percentage points year-on-year, while the net margin increased by 1.18 percentage points to 5.31% [4] - The company reported a cash dividend of 3.00 yuan per 10 shares, with a payout ratio of 46.38% and a dividend yield of 4.4% based on the closing price on April 18, 2025 [1] - The projected net profit for 2025 is 504 million yuan, with corresponding P/E ratios of 9.4x, 8.6x, and 7.9x for the years 2025 to 2027 [6] Product and Market Insights - The company’s commercial compressors surpassed 10 million units in sales for the first time, achieving 10.92 million units, a growth of 31% [2] - The revenue from new energy vehicle air conditioning compressors increased by 52.7% year-on-year, with sales volume exceeding 600,000 units, a growth of 68% [2] - The company is focusing on optimizing its product structure and enhancing its presence in the commercial and variable frequency markets [2] Cost and Expense Management - The sales expense ratio decreased significantly due to changes in accounting standards, while the financial expense ratio was affected by increased exchange losses [5] - The company’s operating expenses for sales, management, R&D, and financial activities were reported at 0.86%, 2.91%, 2.99%, and -0.18% respectively for 2024 [5]