Core Viewpoint - The company plans to invest up to RMB 1.5 billion in a new automotive parts production base in Jiaxing, which is expected to enhance its capabilities in emerging business areas and meet the growing demand in the automotive industry, particularly in the electric vehicle sector [1][2]. Investment and Project Development - The new project will cover approximately 150 acres and focus on the production of thermal management systems, air suspension systems, sealing systems, and transmission systems, aligning with the global automotive industry's shift towards smarter and safer vehicles [2]. - The company anticipates that the project will reach an annual output value of around RMB 1.5 billion within five years of commencing production [2]. Core Business Growth - The transmission belt business is expected to see significant growth in 2024 due to the upgrade to molded multi-wedge belt technology, with a projected 25% year-on-year increase in sales revenue [2]. - The company is expanding its industrial belt products into various sectors, including robotics, drones, rail transportation, and agriculture, leveraging a "technology + management + market" strategy to enhance risk control and cost advantages [2]. Product Diversification and Global Expansion - By 2025, the company aims to focus on lightweight air spring products for passenger vehicles, alongside mass production of battery pipeline systems and motor pipeline systems, creating a product matrix that includes air suspension systems and thermal management systems [3]. - In addition to the new project, the company plans to establish a commercial vehicle parts production base in Jinan by 2025 and a production base in Thailand, targeting Southeast Asia and the European and American markets [3]. - The company has been expanding its overseas distribution network, exporting products to Europe, Southeast Asia, South America, and the Middle East, which is expected to further enhance its international market presence [3]. Profit Forecast - The company projects net profits attributable to shareholders of RMB 199 million, RMB 246 million, and RMB 304 million for the years 2025 to 2027, with corresponding EPS of RMB 1.92, RMB 2.37, and RMB 2.92, and PE ratios of 21.3, 17.3, and 14.0 times respectively [3].
丰茂股份(301459)：主业稳健增长 加大新兴业务投入