DAAE(SH:600178) Zheng Quan Shi Bao Wang·2025-06-11 13:46Core Viewpoint - Dong'an Power is actively engaging with institutional investors and is focused on expanding its market presence in the automotive industry, particularly in the new energy vehicle sector, while aiming for significant sales and revenue growth by 2025 [1][2][3]. Group 1: Company Overview - Dong'an Power has three major engine product platforms: naturally aspirated, turbocharged direct injection, and new energy range-extended power systems, along with three transmission product platforms [1]. - The company aims to provide integrated solutions for high-end passenger cars, light and medium commercial vehicles, and new energy vehicles [1]. Group 2: Financial Performance - In Q1 2025, Dong'an Power achieved revenue of 994 million yuan and a net profit of 3.73 million yuan, marking a turnaround from losses [1]. - The company has set a target of selling 600,000 complete units and achieving revenue of 5.2 billion yuan by 2025 [3]. Group 3: Market Development - Dong'an Power has established partnerships with numerous new energy vehicle manufacturers and plans to launch multiple models equipped with its range extender by 2025 [2]. - The company has secured 51 new market agreements with 26 enterprises, projecting total sales of 1.5 million units over the product lifecycle [1]. Group 4: Production Capacity and Strategy - Current production capacity stands at 300,000 units at the main plant and 440,000 units at Dong'an Automotive, which is sufficient to meet existing orders [2]. - The company plans to enhance production capacity through technological upgrades and adjustments in work shifts, currently operating on a single 10-hour shift [2]. Group 5: Product Development and Market Position - Dong'an Power's engines primarily supply Chang'an Automobile in the passenger vehicle sector, while its DHT products are gradually increasing in volume with Zhengzhou Nissan [3]. - The company is also developing clean energy engines, including methanol and hydrogen fuel engines, to diversify its product offerings [2]. Group 6: Profitability and Cost Management - The current low gross margin is attributed to intense competition in the automotive industry and significant depreciation expenses expected in 2024 [4]. - Dong'an Power aims to improve gross margins through cost reduction strategies and anticipates that increased sales volume will enhance profitability over time [4].