XJEC(000400) 光大证券·2025-04-16 10:16Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a revenue of 17.089 billion yuan in 2024, a slight increase of 0.17% year-on-year, and a net profit of 1.117 billion yuan, up 11.09% year-on-year. A cash dividend of 1.50 yuan per 10 shares is proposed [1] - The company's direct current transmission system business is expected to see significant growth due to ongoing ultra-high voltage construction in China, with revenue from this segment increasing by 101.57% to 1.444 billion yuan in 2024 [2] - The company is benefiting from increased investment in the power grid, with various business segments showing growth opportunities, including smart distribution systems and smart meters [3] Summary by Sections Financial Performance - In 2024, the company recorded a gross profit margin of 20.77%, an increase of 2.77 percentage points year-on-year, and a net profit margin of 6.54%, up 0.65 percentage points year-on-year. For Q1 2025, the gross profit margin and net profit margin were 23.47% and 8.84%, respectively [1] - The company has adjusted its profit forecasts for 2025 and 2026, expecting net profits of 1.418 billion yuan and 1.728 billion yuan, respectively, with corresponding EPS of 1.39 yuan and 1.70 yuan [4] Business Segments - The smart distribution system revenue grew by 2.93% to 4.711 billion yuan in 2024, while smart meters saw an 11% increase to 3.866 billion yuan. However, the renewable energy and system integration segment experienced a decline of 37.47% to 2.464 billion yuan [3] - The company’s direct current transmission system revenue is projected to continue growing due to the ongoing development of flexible direct current transmission technology and the high demand for ultra-high voltage projects in China [2] Market Outlook - The report highlights that the investment in China's power grid is expected to increase, with a projected completion amount of 608.3 billion yuan in 2024, representing a year-on-year growth of 15.3%. The combined investment from State Grid and Southern Grid is anticipated to exceed 800 billion yuan in 2025 [3]