DMEGC(002056) Tai Ping Yang Zheng Quan·2025-04-28 11:14Investment Rating - The report maintains a "Buy" rating for the company [1][6][15] Core Views - The company's Q1 2025 performance shows a year-on-year revenue increase of 23.35% to 52.22 billion yuan and a net profit increase of 29.65% to 4.58 billion yuan, despite a quarter-on-quarter decline in net profit of 49.11% [3][4][6] - The three main business segments of the company are performing steadily, with significant contributions from the photovoltaic, magnetic materials, and lithium battery sectors [4][6] Summary by Sections Financial Performance - Q1 2025 revenue reached 52.22 billion yuan, up 23.35% year-on-year and 4.93% quarter-on-quarter; net profit was 4.58 billion yuan, up 29.65% year-on-year but down 49.11% quarter-on-quarter [3][4] - Photovoltaic business revenue was approximately 34.5 billion yuan with a shipment of about 5.9 GW, representing a year-on-year growth of about 65% [4] - Magnetic materials revenue was around 11.30 billion yuan with shipments of 53,000 units; lithium battery revenue was 5.4 billion yuan with a shipment of 128 million units, showing a year-on-year growth of about 28.5% [4] Business Segments - The photovoltaic segment is expected to benefit from cost reduction and efficiency improvements, with full production capacity in Indonesia contributing significantly to profits [4][6] - The company is focusing on small power applications, enhancing its 18650 battery series and developing the 21700 series, which has led to an increase in market penetration [5][6] - The magnetic materials segment is capitalizing on new replacement policies, increasing revenue and profitability through a broader customer base [5][6] Future Outlook - The company anticipates continued growth in Q2 2025 due to ongoing domestic demand and a 90-day tariff exemption in Southeast Asia [4][6] - Revenue projections for 2025-2027 are 210.96 billion yuan, 242.17 billion yuan, and 299.25 billion yuan respectively, with net profits expected to be 19.42 billion yuan, 22.81 billion yuan, and 28.81 billion yuan [6][7]