LSKJ(300680) 浙商证券·2024-11-10 08:23Investment Rating - The report maintains a "Buy" rating for Longsheng Technology [5] Core Views - The company plans to establish a joint venture in Chongqing, which is expected to enhance its collaboration with Seres in depth and breadth [1] - The joint venture will focus on the production of components for electric drive systems, particularly motor cores, which have seen significant growth since the establishment of its wholly-owned subsidiary, Longsheng New Energy [2] - The investment aims to transition the company's product offerings from components to semi-assemblies, thereby increasing product value and core competitiveness [2] Summary by Sections Business Overview - Longsheng Technology's products are primarily used in energy-saving and emission-reduction fields, including EGR systems, motor cores, natural gas injection systems, and precision components [2] - The EGR products are mainly applied in commercial vehicles and new energy vehicles, while motor cores are essential components in electric drive systems for new energy vehicles [2] Investment Purpose and Impact - Since entering the new energy sector in 2018, the company has made significant progress in energy power systems, electric drive systems, electronic control systems, and intelligent driving systems [2] - The establishment of the joint venture is expected to strengthen customer development and align with the company's overall business strategy, particularly in collaboration with Seres for various vehicle models [2] Financial Forecast and Valuation - Projected revenues for 2024-2026 are estimated at 26.61 billion, 33.47 billion, and 40.67 billion, representing year-over-year growth of 45.6%, 25.8%, and 21.5% respectively [3] - Expected net profits for the same period are forecasted at 2.38 billion, 3.15 billion, and 3.98 billion, with year-over-year growth rates of 61.9%, 32.6%, and 26.2% [3] - Earnings per share (EPS) are projected to be 1.03, 1.36, and 1.72 yuan, with corresponding price-to-earnings (P/E) ratios of 25.91, 19.54, and 15.48 [3][4]