Shanghai YanPu(SH:605128) Huachuang Securities·2024-09-10 05:08Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 30.1 CNY, compared to the current price of 25.95 CNY [1]. Core Views - The company has secured multiple new project approvals in its skeleton business, indicating strong growth potential. The expected revenue from these projects is approximately 2.352 billion CNY over their lifecycle [1]. - The company is transitioning into the full seat assembly market, leveraging its core competencies in skeleton production and aiming to establish a complete seat production capability [1]. - The new railway container business is entering a growth phase, with expected volume increases contributing positively to the company's performance [1]. - The company is projected to achieve significant profit growth, with net profits expected to reach 143 million CNY in 2024, representing a year-on-year increase of 56% [2]. Summary by Sections Investment Rating - The company is rated as "Strong Buy" with a target price of 30.1 CNY, indicating an expected outperformance of over 20% compared to the benchmark index within the next six months [1][9]. Business Developments - The company has recently announced new project approvals, including: - A project with a leading new energy vehicle platform expected to generate 2.27 billion CNY over five years [1]. - A project with a well-known domestic OEM expected to generate 210 million CNY over five years [1]. - Four additional projects with various well-known automotive companies, expected to generate 2.35 billion CNY over 4-6 years [1]. - The company is also entering the railway container market, with production expected to ramp up significantly in 2024 [1]. Financial Projections - The company’s total revenue is projected to grow from 1.519 billion CNY in 2023 to 3.841 billion CNY by 2026, with a compound annual growth rate (CAGR) of 35.4% [2]. - Net profit is expected to increase from 91 million CNY in 2023 to 329 million CNY in 2026, reflecting a CAGR of 99.3% [2]. - Earnings per share (EPS) are projected to rise from 0.77 CNY in 2023 to 2.77 CNY in 2026 [2]. Market Position - The company is positioned as a leading independent supplier in the skeleton market, with a strong technical team and capabilities in precision stamping, injection molding, and product integration [1]. - The company is expected to leverage its existing technologies and experience to expand into higher-margin seat assembly business [1].