Riyue HI(603218) 国金证券·2025-04-29 08:22Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5][12]. Core Views - The company reported a revenue of 4.7 billion RMB in 2024, a year-on-year increase of 0.87%, and a net profit attributable to shareholders of 624 million RMB, up 29.6% [2]. - In Q1 2025, the company achieved a revenue of 1.3 billion RMB, representing a significant year-on-year growth of 86.4%, with a net profit of 121 million RMB, up 39.1% [2]. - The company’s casting business revenue remained stable at 4.62 billion RMB in 2024, with a slight decline in gross margin to 17%, primarily due to lower raw material prices and increased depreciation from fixed assets [3]. - The company is expected to benefit from high industry demand in 2025, leading to improved capacity utilization and operational leverage, which may enhance profit margins [3]. - The company’s inventory and accounts receivable turnover improved significantly in Q1 2025, with inventory turnover days decreasing by 12 days and accounts receivable turnover days decreasing by 68 days [4]. Summary by Sections Performance Review - In 2024, the company achieved a total revenue of 4.7 billion RMB, with a net profit of 624 million RMB, marking a 29.6% increase year-on-year [2]. - For Q1 2025, the revenue reached 1.3 billion RMB, a remarkable growth of 86.4%, and the net profit was 121 million RMB, up 39.1% [2]. Operational Analysis - The casting business generated 4.62 billion RMB in revenue in 2024, with a gross margin of 17%, down 1.17 percentage points from the previous year due to price competition and increased depreciation [3]. - The company anticipates a significant increase in capacity utilization in 2025, driven by strong industry demand and tighter casting capacity [3]. Cash Flow and Working Capital - The company reported a reduction in cash outflow from operating activities to -309 million RMB in Q1 2025, narrowing by 116 million RMB year-on-year due to improved sales collections [4]. Profit Forecast and Valuation - The forecasted net profits for 2025, 2026, and 2027 are 880 million RMB, 1.03 billion RMB, and 1.19 billion RMB, respectively, with corresponding P/E ratios of 15, 12, and 11 [5].