Core Viewpoint - Tianfeng Securities reports that Wuling Motors (00305) is expected to achieve continued growth in performance due to its research capabilities in the new energy sector and ongoing investment in building a complete autonomous industrial chain [1] Group 1: Financial Projections - The company is projected to achieve total revenue of 8.866 billion, 9.724 billion, and 10.672 billion yuan for 2025-2027, representing year-on-year growth of 12%, 10%, and 10% respectively [1] - Expected net profit attributable to shareholders for 2025-2027 is 80 million, 110 million, and 144 million yuan, with year-on-year growth of 58%, 38%, and 31% respectively [1] - The target price set by Tianfeng Securities for the company is 0.77 HKD, with a "Buy" rating [1] Group 2: Business Model and Performance - Wuling Motors has adjusted its business model for commercial vehicles, leading to a projected total revenue of 7.949 billion yuan in 2024, with operating costs reduced by 24.96% to 7.089 billion yuan [2] - The company achieved a net profit of 111 million yuan in 2024, a year-on-year increase of 60.19%, and a net profit attributable to shareholders of 51 million yuan, up 115.59% year-on-year [2] - The gross profit margin improved significantly, reaching 9.89% in 2023 and 10.82% in 2024, driven by adjustments in the commercial vehicle business and an increase in the proportion of high-margin products [2] Group 3: Strategic Focus and Development - The controlling shareholder, Guangxi Automobile Group, has proposed the "Ling Shi Project" strategy, aiming to cultivate three national-level manufacturing champions in the automotive parts sector from 2025 to 2027 [3] - The company is focusing on upgrading its product structure towards mid-to-high-end products, successfully developing high-value products such as gas expansion forming and micro-integrated electric axles [3] - Wuling Motors is expanding its international presence with operations in Indonesia and India, promoting the internationalization of its parts business [3] Group 4: New Energy Initiatives - The company is actively laying out its new energy industry strategy, integrating traditional power technology upgrades with new energy power development [4] - Continuous development of efficient low-emission engines and promotion of new energy products, including electric vehicle engines and control systems, is underway [4] - Wuling Motors has established Liuzhou Wuling New Energy Vehicle Co., Ltd. to integrate its new energy vehicle business, which will become a major customer for its parts and products in the future [4]