Shanghai YanPu(SH:605128) ZHONGTAI SECURITIES·2024-09-12 12:10Investment Rating - The report maintains a "Buy" rating for the company [1][10]. Core Insights - The company has secured multiple seating frame projects from the Lear Group, enhancing the long-term growth logic of its frame business. This includes partnerships with clients such as XPeng Motors, Seres, and BYD, alleviating market concerns about competition affecting order volumes [3][4]. - The company has entered a performance acceleration phase, driven by new projects from BYD and Seres, with expectations for new business contributions starting in 2024 [3]. - The company is positioned as a leader in the seating frame market and is expanding into complete seating assembly, capitalizing on the domestic market's potential for replacement and growth [3]. Financial Summary - Revenue is projected to grow from 1,519 million in 2023 to 3,701 million by 2026, with a compound annual growth rate (CAGR) of 17% [3][9]. - Net profit is expected to increase from 140 million in 2024 to 315 million by 2026, reflecting a growth rate of 54% in 2024 and 40% in 2026 [3][9]. - The company's P/E ratio is forecasted to decrease from 22.4 in 2024 to 9.9 in 2026, indicating improving valuation metrics as earnings grow [3][9]. Business Outlook - The company is expected to benefit from a significant market opportunity in the seating sector, with an estimated market size of 150 billion in 2025 and a projected CAGR of 17% [3]. - The competitive landscape is favorable, with a high concentration of foreign players, providing an opportunity for domestic companies to gain market share [3]. - The company’s core advantages include a strong reputation in frame technology and a solid customer base, which are anticipated to support its expansion into complete seating solutions [3].