Incident: The company released a quarterly report, and achieved revenue of 430 million yuan in 24Q1, an increase of 78.2%. Net profit to mother was 110 million yuan, an increase of 102.2%, and a net profit margin of 24.9% to mother, an increase of 3.0 pct. Net profit after deducting non-return to mother was 110 million yuan, an increase of 112.6%, and the net profit margin after deduction of mother was 25.2%, an increase of 4.1 pct.

The 24Q1 consolidated gross margin was 38.7%, up 1.7 pct. The cost rate for the period was 7.4%, a decrease of 5.2 pct.

Among them, sales/management/R&D/finance expenses were 1.0%/4.0%/3.2%/-0.8%, respectively, with year-on-year changes of -1.3pct/-1.9pct/-0.9pct/-1.1pct.

Customers can expect high-quality growth. The main customers that the company has cooperated with for a long time are well-known international brands of stainless steel vacuum insulation vessels. The cooperation is stable. In '23, the largest customer accounted for 84.9% of total annual sales.

The supplier selection process is very complicated for well-known international brands of stainless steel vacuum vessels. It requires a multi-dimensional inspection of the company's manufacturing capacity, overall business conditions, and corporate social responsibility. Only manufacturers that have passed the strict audit can officially enter their supplier list. Converting suppliers is relatively complicated, and there is generally no replacement.

Profit forecast and rating: We expect the company's net profit for 24-25 to be 58/70 million yuan, respectively, up 23.2%/20.7% year-on-year, corresponding to a 24/25 PE of 15.9/13.2 times. Refer to comparable companies to give 24-year PE 14-16 times, and a reasonable value range of 78.28-89.46 yuan/share, giving a “superior to the market” rating.

Risk warning: Customer demand falls short of expectations, global trade risks, risk of large fluctuations in shipping rates, exchange rates, and raw materials, and increased industry competition.