Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company achieved revenue and net profit of 11.55 billion and 3.41 billion RMB in 2024, representing year-on-year growth of 14.3% and 8.8% respectively. The first quarter of 2025 saw revenue and net profit of 5.10 billion and 1.64 billion RMB, with year-on-year growth of 9.2% and 7.3% [1][4] - The company is focusing on enhancing its market share within the province while expanding into surrounding regions, with a clear growth strategy in place [2][4] - The product structure is steadily improving, with core product upgrades and new product launches contributing to growth. The company expects to continue benefiting from external demand recovery [1][4] Summary by Sections Revenue and Profitability - In 2024, the company's revenue from its core product categories was 3.35 billion and 7.49 billion RMB, with year-on-year growth of 16.6% and 15.2%. The first quarter of 2025 saw similar growth trends [2] - The overall gross margin decreased by 3.6 percentage points to 74.7% in 2024, attributed to the faster growth of lower-priced products. The net profit margin also saw a decline of 1.5 percentage points to 29.6% [3] Cash Flow and Financial Metrics - In the first quarter of 2025, the company reported a cash flow from operations of 1.43 billion RMB, a year-on-year increase of 42.5%. The sales collection reached 4.68 billion RMB, up 25.4% year-on-year [3] - The report projects a revenue forecast of 12.64 billion and 14.30 billion RMB for 2025 and 2026, respectively, with corresponding net profits of 3.67 billion and 4.11 billion RMB [6][18] Valuation - The target price for the company is set at 58.60 RMB, based on a 20x PE ratio for 2025, reflecting the company's growth potential in both domestic and external markets [4][8]