Shanghai YanPu(SH:605128) Minsheng Securities·2024-09-03 08:00Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Views - The company has received a new project designation letter from a leading new energy vehicle manufacturer in China, indicating a significant opportunity for growth in the automotive seat frame assembly sector [4]. - The expected revenue from the new projects is projected to be RMB 2.269 billion over a five-year lifecycle, contributing approximately RMB 454 million annually, which represents 29.88% of the company's total revenue for 2023 [4]. - The company is actively expanding its customer base and product categories, which is expected to lead to a rise in both volume and price, thereby opening up long-term growth potential [5]. Summary by Sections New Project Designation - The company has received a project designation letter for automotive seat frame assembly products, which are applicable to multiple vehicle models [4]. - Three projects have been initiated, with the first expected to start mass production in March 2025, and the subsequent two in July 2025 [4]. Revenue Projections - The projected revenue from the new projects is RMB 2.269 billion from 2025 to 2029, with an annual contribution of RMB 454 million [4]. - The company anticipates a significant increase in revenue, with forecasts of RMB 2.482 billion, RMB 3.278 billion, and RMB 4.191 billion for 2024, 2025, and 2026 respectively, reflecting growth rates of 63.4%, 32.1%, and 27.9% [5][6]. Profitability Forecast - The net profit attributable to shareholders is expected to grow from RMB 173 million in 2024 to RMB 330 million in 2026, with growth rates of 89.8% and 39.0% respectively [5][6]. - The earnings per share (EPS) are projected to increase from RMB 1.46 in 2024 to RMB 2.79 in 2026, with corresponding price-to-earnings (PE) ratios of 17, 12, and 9 [5][6]. Financial Health - The company’s total assets are expected to grow from RMB 2.455 billion in 2023 to RMB 4.389 billion in 2026, indicating a strong financial position [6]. - The debt-to-equity ratio is projected to increase from 50.89% in 2023 to 60.07% in 2026, reflecting a potential increase in leverage [6].