Performance Summary - In 2024, the company achieved a revenue of 2.01 billion yuan, representing a year-on-year growth of 25.2%, and a net profit attributable to shareholders of 530 million yuan, up 14.4% year-on-year [1] - For Q1 2025, the company reported a revenue of 560 million yuan, a year-on-year increase of 24.6%, and a net profit of 160 million yuan, growing 20.8% year-on-year [3] Profitability - The gross margin for 2024 was 46.9%, a decrease of 1.5 percentage points year-on-year, primarily due to changes in accounting standards related to sales expenses; the net margin was 26.2%, down 2.5 percentage points due to impairments, but overall maintained a high level [1] - In Q1 2025, the gross margin was 47.9%, a decline of 0.75 percentage points year-on-year, while the net margin was 29.1%, down 0.9 percentage points [4] Orders and Contracts - As of the end of 2024, the company's contract liabilities reached 1.76 billion yuan, a year-on-year decrease of 10.1%. The company secured significant orders for laser-induced sintering (LIF) equipment for TOPCon and 1.23 billion yuan in orders for back-contact battery laser micro-etching equipment [1] - By the end of Q1 2025, contract liabilities were 1.75 billion yuan, reflecting an 11.4% year-on-year decline [5] Research and Development - In 2024, R&D expenses amounted to 280 million yuan, a year-on-year increase of 12.7%, accounting for 14% of revenue. The company developed laser selective thinning TCP equipment to enhance the stability of TOPCon battery mass production [2] - For Q1 2025, R&D expenses were 60 million yuan, a decrease of 10.1% year-on-year, representing 11.1% of revenue [6] Technology and Market Position - The company is a leader in photovoltaic laser equipment, benefiting from the iteration of technologies such as xBC, which simplifies processes and reduces costs. It has secured orders from leading customers and anticipates continued growth [7] - The company’s TOPCon laser doping (TCSE) and LIF equipment have achieved mass production orders, driven by the expansion demand in the TOPCon industry, with LIF equipment improving efficiency by over 0.3% and reducing silver consumption by over 20% [7] - The HJT laser repair equipment enhances conversion efficiency and has received orders from European clients [8] Future Outlook - The company is expected to see significant growth in net profit from 630 million yuan in 2025 to 880 million yuan in 2027, with year-on-year growth rates of 19%, 15%, and 22% respectively, corresponding to PE ratios of 24, 21, and 17 times [9]

Investment Rating - The report assigns an "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company's revenue from laser equipment shows impressive growth, with a significant competitive edge in laser micro-etching technology [6]. - In 2024, the company achieved a revenue of 2.014 billion yuan, a year-on-year increase of 25.20%, and a net profit attributable to shareholders of 528 million yuan, up 14.40% year-on-year [5]. - For Q1 2025, the company reported a revenue of 561 million yuan, reflecting a year-on-year growth of 24.55%, and a net profit of 163 million yuan, up 20.76% year-on-year [5]. Revenue and Profitability - In 2024, revenue from solar cell laser processing equipment reached 1.994 billion yuan, a year-on-year increase of 45.86%, with a gross margin of 45.86%, up 3.56 percentage points [6]. - The company continues to maintain a strong competitive advantage in its core products, particularly in laser-induced sintering (LIF) equipment for TOPCon technology, which has seen successful mass production orders [6]. Research and Development - The company has increased its R&D investment, with R&D personnel rising to 553, accounting for 36.26% of the total workforce, and R&D expenses reaching 283 million yuan, a year-on-year increase of 12.73% [6]. - New laser welding processes are being developed, with production samples already delivered, expanding the market for laser equipment applications in components [6]. Financial Forecasts - The company is expected to benefit significantly from the accelerated industrialization of back-contact (BC) batteries, with projected revenues of 2.456 billion yuan, 3.194 billion yuan, and 4.932 billion yuan for 2025, 2026, and 2027 respectively [6][8]. - Net profits attributable to shareholders are forecasted to be 717 million yuan, 919 million yuan, and 1.133 billion yuan for the same years [8]. - The current stock price corresponds to a P/E ratio of 22, 17, and 14 for 2025, 2026, and 2027 respectively [6].