Investment Rating - The report maintains a "Buy" rating for the company [1][15]. Core Views - The company is expected to benefit from long-term demand in the aerospace sector, with new carbon fiber products and production lines achieving verification and acceptance [15]. - Revenue projections for 2025-2027 are estimated at 29.43 billion, 34.30 billion, and 40.60 billion respectively, with corresponding net profits of 8.97 billion, 10.58 billion, and 12.53 billion [15]. Financial Performance - In Q1 2025, the company achieved revenue of 5.65 billion, a year-on-year increase of 10.50% and a quarter-on-quarter increase of 3.24% [10]. - The net profit for Q1 2025 was 1.55 billion, a year-on-year decrease of 1.58% but a quarter-on-quarter increase of 22.75% [10]. - The company's sales gross margin for Q1 2025 was 47.50%, showing a year-on-year increase of 0.53 percentage points and a quarter-on-quarter increase of 6.17 percentage points [10]. Business Segments - In Q1 2025, the revenue from the fiber expansion segment was 3.61 billion, a year-on-year increase of 14.15% [11]. - The energy new materials segment generated 1.10 billion in revenue, a year-on-year increase of 13.07% [11]. - The precision machinery segment saw a significant increase in revenue, achieving 0.19 billion, a year-on-year increase of 193.70% [11]. Market Structure - In 2024, the aerospace, aviation, and new energy sectors were the largest contributors to the company's revenue, totaling 21.34 billion, accounting for 87.12% of total sales [8]. - The aviation business contributed 11.72 billion, a year-on-year decrease of 6.48% [8]. - The new energy-related business saw a revenue increase of 16.66%, contributing 6.99 billion [8]. Product Development - The company has made significant advancements in research and development, including the successful development of T1100-grade carbon fiber and new high-model fibers that have improved wear resistance and reduced production costs [12]. - The GW300 carbon fiber has been approved for use in civil aviation and low-altitude equipment, with revenue from this segment increasing by 495% [12]. Major Contracts - The company has signed significant contracts, including a 20.98 billion contract for carbon fiber and related materials, with 2.95 billion fulfilled in 2024 [13]. - Another contract worth 36.64 billion is in progress, with 6.03 billion fulfilled in 2024 [14].

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, indicating challenges in the market due to overcapacity and increased competition in the carbon fiber industry [1][2]. Financial Performance - In 2024, the company achieved revenue of 2.45 billion yuan, a year-on-year decrease of 2.69%, and a net profit attributable to shareholders of 741 million yuan, down 15.12% [1]. - For Q4 2024, revenue was 548 million yuan, a significant decline of 28.96%, with net profit dropping 49.93% to 126 million yuan [1]. Segment Performance - The carbon fiber and fabric segment generated revenue of 1.45 billion yuan, down 12.91% year-on-year, accounting for 59.27% of total revenue [2]. - The T800 grade carbon fiber saw a revenue increase of 64.64% to 472 million yuan, while the T700 grade remained stable due to increased demand for T700 in equipment [2]. - Wind power carbon beam business experienced a recovery with revenue of 537 million yuan, up 25.81% year-on-year [2]. - The prepreg business generated 234 million yuan, down 12.86%, primarily due to intensified competition and price declines [2]. - The composite technology segment achieved revenue of 107 million yuan, up 15.6%, driven by growth in drone-related businesses [2]. - The precision machinery segment saw a significant increase in revenue of 89 million yuan, up 161.20% [2]. New Product Development - The company is actively developing new products and expanding into new fields such as civil aviation, low-altitude economy, and electromagnetic energy storage [4]. - New T1100 and T1100 grade carbon fibers have been developed to meet high-end equipment needs, with successful applications in drones and electric aircraft [4]. - The GW300 carbon fiber and flame-retardant prepreg have been approved for use in large aircraft, marking a significant milestone for the company [4]. - New high-performance prepregs for various applications, including 3C consumer electronics and photovoltaic industries, have been successfully developed and are in stable supply [4]. Production Capacity Expansion - The company successfully passed the equivalence verification for a certain model of carbon fiber production line, ensuring product performance consistency [5]. - The first phase of the 4000-ton high-performance carbon fiber production line in Inner Mongolia was completed and began production in mid-2024 [5].