Investment Rating - The report assigns an "Accumulate" rating for Jiyang Precision, marking its first coverage [1][52]. Core Views - Jiyang Precision is a specialized high-tech enterprise engaged in the R&D, production, sales, and service of precision components, with a focus on high-quality mechanical and electronic parts widely used in electric tools, cleaning appliances, and the automotive sector [2][13]. - The company has experienced rapid growth, with revenue increasing from 160 million yuan in 2017 to 460 million yuan in 2023, representing a CAGR of 19%, while net profit grew from 22 million yuan to 43 million yuan, with a CAGR of 12% [2][21]. - The automotive parts business has become a new growth driver, with significant revenue contributions and a CAGR of 45% from 82 million yuan in 2020 to 251 million yuan in 2023 [16][18]. Summary by Sections 1. Company Overview - Jiyang Precision focuses on precision component manufacturing and has established partnerships with renowned manufacturers, including Makita, Ecovacs, Canon, and Bosch [13]. - The company has transitioned from home appliance components to automotive parts, with automotive components accounting for 55% of total revenue in 2023 [16][20]. 2. Automotive Industry Demand - The automotive parts industry in China has seen rapid growth, with revenues reaching 4,066.8 billion yuan in 2021 and projected to grow to 4,620 billion yuan by 2024 [31]. - The trend towards "electrification and lightweighting" is driving demand for aluminum die-casting components, with significant increases in aluminum usage in vehicles expected [3][41]. 3. Financial Performance - Jiyang Precision's revenue for the first half of 2024 was 242 million yuan, a year-on-year increase of 23.95%, with net profit reaching 26 million yuan, up 34.55% year-on-year [2][24]. - The company forecasts net profits of 60 million yuan, 75 million yuan, and 92 million yuan for 2024, 2025, and 2026, respectively, with corresponding dynamic P/E ratios of 24, 19, and 15 [52]. 4. Investment Outlook - Despite a higher valuation compared to peers, Jiyang Precision's leading technology and ongoing product development position it for continued growth [52]. - The report anticipates sustained growth in the automotive parts sector, with revenue growth rates projected at 25%, 15%, and 15% for 2024 to 2026 [45].
吉冈精密：精密制造小巨人企业，汽车轻量化打开长期成长空间