Shanghai YanPu(SH:605128) ZHONGTAI SECURITIES·2024-09-12 13:03Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has secured multiple seating frame projects from the Lear Group, enhancing the long-term growth logic of its frame business. The new projects are expected to generate approximately 2.3 billion in revenue over their lifecycle from 2024 to 2030 [3][4] - The company is entering a performance acceleration phase driven by new business and customer demand, with Q2 2023 identified as a turning point for profitability [3] - The company is positioned as a leader in the frame sector and is expanding into complete seat 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, with year-on-year growth rates of 54%, 61%, and 40% respectively [3][9] - The company's earnings per share (EPS) is forecasted to rise from 1.18 in 2024 to 2.66 in 2026 [3][9] Market Position and Strategy - The company is enhancing its reputation in the seating frame sector, which is critical for safety and accounts for nearly 70% of the total investment in seats [3] - The domestic market for seating is projected to reach approximately 150 billion by 2025, with a favorable competitive landscape dominated by foreign companies [3] - The company aims to leverage its established customer relationships and technical expertise to penetrate the complete seat assembly market [3]