KSHG(SH:605333) Xin Lang Cai Jing·2025-12-01 00:34Core Viewpoint - The company, Hu Guang, is positioned as a leader in the automotive wiring harness industry, capitalizing on the shift towards electric vehicles and the increasing demand for high-voltage wiring harnesses, which is expected to drive significant market growth in the coming years [1][2][4]. Group 1: Company Overview - Hu Guang was established in 1997 and specializes in automotive wiring harnesses, offering both low-voltage and high-voltage products [1]. - The company has built long-term partnerships with major automotive manufacturers, including Chery and Volkswagen, and has successfully expanded its client base to include several well-known domestic and international car companies [1]. - Hu Guang went public in 2020, coinciding with the rise in electric vehicle penetration and sales from new energy vehicle manufacturers [1]. Group 2: Market Potential - The shift towards smart electric vehicles is expected to increase the average selling price (ASP) of automotive wiring harnesses, with a potential market increment of approximately 27 billion yuan over the next six years [2]. - The automotive wiring harness market is projected to exceed 120 billion yuan by 2030, with an annual growth rate of 4%, driven by the demand for high-voltage wiring harnesses [2]. - The low-voltage segment is expected to reach around 95 billion yuan with a 3% annual growth rate, while the high-voltage segment is anticipated to grow to 26 billion yuan at a 9% annual growth rate [2]. Group 3: Competitive Advantages - Hu Guang has maintained a higher research and development intensity compared to the industry average, allowing it to seize opportunities in high-voltage wiring harness development amid the transition to new energy vehicles [3]. - The company is expanding its connector business to enhance value and profitability, while also diversifying into the robotics sector, which is expected to contribute to long-term growth [3]. - The company’s fixed costs are being diluted due to rapid scale growth, releasing internal potential for profitability [3]. Group 4: Investment Outlook - The company is expected to see continuous performance growth as major clients, such as Seres, increase their sales, leading to a higher supply share from leading automotive manufacturers [4]. - The robotics business is positioned to provide additional growth opportunities in the future [4]. - Forecasted net profits for the company from 2025 to 2027 are projected to be 690 million yuan, 880 million yuan, and 1.07 billion yuan, reflecting year-on-year growth rates of 3%, 28%, and 21% respectively, with a compound annual growth rate of 17% over the next three years [4].