Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [9][21]. Core Insights - The company reported a significant year-on-year revenue increase of 39.1% in Q1 2025, reaching 3.24 billion yuan, with a net profit of 230 million yuan, reflecting an 88.3% growth [2]. - The report highlights three key growth areas for the company: aviation power systems, motorcycle engines, and general machinery, with expectations for continued strong performance in these segments [3][4]. - The company has adjusted its profit forecasts for 2025-2027 upwards due to better-than-expected business growth and investment income from a joint venture, projecting net profits of 713 million yuan, 834 million yuan, and 949 million yuan respectively [9]. Financial Performance Summary - In Q1 2025, the company achieved a net profit of 230 million yuan, a year-on-year increase of 88.3%, and a non-recurring net profit of 220 million yuan, up 87.2% [2]. - The company's revenue from motorcycle engine sales reached 3.82 billion yuan in 2024, with a year-on-year growth of 13.8% and a net profit of 153 million yuan, reflecting an 18.84% increase [3]. - The general machinery segment reported a revenue of 5.22 billion yuan in 2024, with a net profit of 359 million yuan, marking a 39.33% increase [4]. - The financial projections for the company indicate a total revenue of 12.69 billion yuan in 2025, with a year-on-year growth rate of 20.8% and a net profit of 713 million yuan, representing a 54.5% increase [5].

Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][6]. Core Insights - In 2024, the company achieved a total revenue of 10.506 billion, representing a year-on-year growth of 28.89%. The net profit attributable to shareholders was 461 million, with a year-on-year increase of 27.45% [6][2]. - The company is experiencing strong growth in emerging businesses, particularly in the aviation and new energy sectors, which are expected to drive future revenue [6][2]. - The report highlights a positive outlook for the company's value chain enhancement, driven by three key business segments: aviation power systems, motorcycle engines, and general machinery [6][2]. Financial Performance Summary - **Revenue and Profitability**: - Total revenue for 2024 is projected at 10.506 billion, with a growth rate of 28.9% for 2025 and 11.7% for 2026 [2][7]. - Net profit for 2024 is estimated at 461 million, with a forecasted increase to 630 million in 2025 and 725 million in 2026, reflecting growth rates of 36.6% and 15.0% respectively [2][7]. - **Earnings Per Share (EPS)**: - EPS is expected to rise from 0.40 in 2024 to 0.55 in 2025 and 0.63 in 2026, with a corresponding decrease in price-to-earnings (P/E) ratio from 53 to 39 and then to 34 [2][7]. - **Dividends**: - The company plans to distribute a cash dividend of 2.00 per 10 shares, totaling 229 million, which represents a payout ratio of 49.64% [6][2]. Business Segment Performance - **General Machinery**: - Sales of general power and terminal products reached 483,450 units, with revenue of 5.22 billion, marking a year-on-year increase of 35.4% [6][2]. - **Motorcycle Engine Business**: - The motorcycle engine segment sold 298,520 units, generating revenue of 3.82 billion, reflecting a year-on-year growth of 13.8% [6][2]. - **Emerging Businesses**: - The aviation power segment reported revenue of 1.6 billion, a significant increase of 71.74%, while the new energy business achieved 5.79 billion in revenue, up 334.84% [6][2].