SHUANGHUAN COMPANY(SZ:002472) Minsheng Securities·2025-01-21 07:29Investment Rating - The report maintains a "Recommended" rating for the company [5] Core Views - The company is experiencing steady growth in performance, with a projected net profit of 1.016 to 1.036 billion yuan for 2024, representing a year-on-year increase of 24.45% to 26.90% [1] - The company is a leader in precision drive systems and is accelerating its globalization while expanding into smart drive mechanisms and robotic joint businesses [3] Summary by Sections Performance Overview - The company forecasts a net profit of 1.016 to 1.036 billion yuan for 2024, with a year-on-year growth of 24.45% to 26.90% [1] - The fourth quarter of 2024 is expected to yield a net profit of 288 million yuan, a year-on-year increase of 26.7% and a quarter-on-quarter increase of 8.6% [1] - The wholesale sales of passenger vehicles reached 8.859 million units in 2024, up 12.4% year-on-year and 32.2% quarter-on-quarter [1] Market Expansion - The company has a 40% to 50% market share in the domestic new energy market and is actively expanding overseas, securing projects with major clients like Toyota and a well-known European luxury brand [2] - By the end of 2023, the company established a production capacity of 5 million sets of new energy drive gears and is progressing with a factory in Hungary to enhance its global presence [2] Growth Drivers - The company is leveraging its technological leadership in high-performance, low-noise precision gears to benefit from the rapid growth of the new energy vehicle sector [1] - The subsidiary, Zhejiang Huankui Technology, is expanding its customer base and product offerings in smart home and smart automotive sectors, significantly boosting its revenue and net profit [1][2] Financial Projections - Revenue projections for 2024, 2025, and 2026 are 10.32 billion, 12.45 billion, and 14.94 billion yuan respectively, with corresponding net profits of 1.026 billion, 1.289 billion, and 1.598 billion yuan [4][7] - The earnings per share (EPS) are expected to be 1.21, 1.52, and 1.89 yuan for 2024, 2025, and 2026 respectively, with price-to-earnings (PE) ratios of 27, 22, and 18 [3][4]