ZONGSHEN POWER(001696) 招商证券·2025-04-01 09:06Investment Rating - The report maintains a strong buy recommendation for the company [5] Core Views - The company achieved total revenue of 10.506 billion, net profit attributable to shareholders of 461 million, and net profit excluding non-recurring items of 442 million in 2024, representing year-on-year increases of 28.89%, 27.45%, and 42.92% respectively [1] - The company's motorcycle engine business saw sales of 2.9852 million units, a year-on-year increase of 18.44%, with revenue of 3.824 billion, up 13.68% [2] - The acquisition of Longxin General Power Co., Ltd. was completed, making the company the controlling shareholder, which is expected to enhance its market position [3] - The company is positioned as a leader in general power machinery and motorcycle engines in China, with significant growth potential in the aviation engine sector due to the development of the low-altitude economy [11] Financial Performance - In Q4 2024, total revenue reached 3.102 billion, a year-on-year increase of 36.39%, with net profit attributable to shareholders of 70 million, marking a return to profitability [1] - The general power machinery and terminal products sales totaled 4.8345 million units, up 37.34%, with total revenue of 5.226 billion, a 35.33% increase [11] - The aviation power business revenue grew by 71.67% to 160 million, driven by increasing order demand and market share [11][9] Strategic Developments - The company has made significant advancements in its new energy business, including innovations in electric drive systems and the establishment of a hydrogen supply station [11] - Strategic partnerships have been formed to enhance production capabilities and digital transformation in manufacturing [11] Future Outlook - The company is projected to achieve net profits of 641 million, 762 million, and 871 million in 2025, 2026, and 2027 respectively, with corresponding PE ratios of 39.3, 33.1, and 28.9 [10][11]