CDXG(SH:600353) Guoxin Securities·2025-06-09 14:18Investment Rating - The report assigns an "Outperform the Market" rating to the company [5]. Core Views - The company is driven by multiple sectors including power equipment, military, and electronic materials, with a focus on R&D investment [1][8]. - The company achieved a record production and sales scale of 1.2 million vacuum circuit breakers in 2024, solidifying its leading position in the industry [2]. - The company has made breakthroughs in high-power electronic tubes for controlled nuclear fusion and semiconductor equipment, which are expected to drive revenue growth [2]. - The company successfully increased its annual production capacity of aluminum nitride powder to 500 tons, enhancing its product structure and reducing costs through domestic material sourcing [3][9]. Summary by Relevant Sections Financial Performance - In 2024, the company reported revenue of 1.586 billion yuan, a year-on-year increase of 20.5%, and a net profit of 102 million yuan, up 10.5% year-on-year [1][4]. - The gross margin for 2024 was 22.82%, a decrease of 3.87 percentage points compared to the previous year, primarily due to rising raw material costs [20]. - For Q1 2025, the company reported revenue of 343 million yuan, a year-on-year decrease of 11.4%, but a net profit increase of 19.3% year-on-year [1][13]. Business Segments - The company's main business segments include power equipment (54% of total revenue), military (23%), and electronic materials (5%) [20]. - The vacuum circuit breaker segment accounted for 43% of total revenue in 2024, indicating its significance to the company's overall performance [20]. - The electronic materials segment saw a remarkable growth of 67.16% year-on-year in 2024, reflecting strong demand in high-end applications [20]. Future Projections - The company is expected to achieve revenue growth of 27.0%, 25.5%, and 22.2% from 2025 to 2027, reaching 2.015 billion, 2.530 billion, and 3.092 billion yuan respectively [28][32]. - Net profit is projected to grow significantly, with estimates of 165 million, 194 million, and 242 million yuan for the same period, corresponding to growth rates of 60.7%, 17.8%, and 24.9% [28][32]. - The report anticipates that the company will maintain a strong position in the power equipment sector, with expected revenue growth rates of 25.86%, 23.76%, and 19.76% from 2025 to 2027 [27].