ADD(SH:603089) Ge Long Hui·2025-12-02 07:20Core Viewpoint - Zhongyou Securities research report highlights Zhengyu Industrial's deep focus on the automotive shock absorber sector for nearly thirty years, establishing a synergistic business structure centered on automotive suspension system shock absorbers, high-margin engine seals, and rubber shock products that have turned profitable, indicating strong growth potential [1] Group 1: Business Structure and Strategy - Zhengyu Industrial has developed a business structure that includes core automotive suspension system shock absorbers, high-margin engine seals, and rubber shock products that are now profitable, marking a new growth area [1] - The company is expanding production capacity through its Thailand base and the second phase of its domestic manufacturing park, while also advancing high-end shock absorber technology research and binding with new energy vehicle supply chains [1] - The global layout is aimed at increasing overseas market share, with projections indicating that by the first half of 2025, overseas market share will reach 86.5% [1] Group 2: Financial Performance and Projections - The shock absorber business, which accounts for over 70% of revenue, is a core component of the suspension system, with major clients including ZF Group in Mexico and AutoZone in the United States [1] - The company has undertaken multiple capacity expansions, with production expected to reach 20.61 million units in 2024 and projected to increase to 41 million units by 2029 [1] - The company's stock price is projected to have PE multiples of 22, 19, and 16 times for the years 2025 to 2027, respectively, indicating a favorable investment outlook [1]