NJEC(SH:600699) Shenwan Hongyuan Securities·2025-03-31 13:21Investment Rating - The report initiates coverage with a "Buy" rating for the company [7][6]. Core Views - The company has over 20 years of experience in automotive electronics and safety, becoming the second-largest independent automotive parts supplier in China. The chairman has announced a "re-entrepreneurship" strategy to leverage industry trends and expand into humanoid robotics [6][7]. - The report emphasizes the company's growth genes through mergers and acquisitions, market recovery in core businesses, and the new growth curve in robotics [6][7]. Financial Data and Profit Forecast - Total revenue (in million yuan) is projected to be 55,728 in 2023, increasing to 78,142 by 2027, with a compound annual growth rate (CAGR) of approximately 10.2% [2]. - Net profit attributable to shareholders is expected to rise from 1,083 million yuan in 2023 to 2,064 million yuan in 2027, reflecting a significant growth rate of 16.0% [2]. - Earnings per share are forecasted to grow from 0.78 yuan in 2023 to 1.46 yuan in 2027 [2]. Growth Genes: Mergers and Acquisitions - The company has adopted a unique "Yuan Sheng Road" strategy, focusing on cross-border mergers to quickly acquire core technologies and global production capacity, thus bypassing the long cycles and risks of independent R&D [13][23]. - The integration capabilities are crucial for sustained performance, with successful mergers leading to rapid revenue growth [23][32]. Core Business Recovery - The automotive safety segment is expected to see significant value enhancement per vehicle due to regulatory drivers and increased product coverage, positioning the company as a potential beneficiary of market shifts [8][43]. - The automotive electronics sector is entering a new product cycle, with orders for next-generation cockpit controllers and 800V high-voltage platforms expected to drive growth [8][43]. Second Curve: Robotics Re-Entrepreneurship - The humanoid robotics sector is entering a commercialization phase, with the company focusing on high-value components such as sensor suites [6][8]. - The company aims to leverage its technological, production, and group synergies to evolve into a Tier 1 player in robotics, implementing a comprehensive strategy for data training and application [6][8]. Investment Analysis Opinion - The report anticipates revenue growth of 16.9% in 2025, with net profit expected to increase by 67.4% in the same year. The company is compared to peers like Top Group and Desay SV, with a projected PE ratio of 22x for 2025 [7][6]. - The target market capitalization is estimated at approximately 35.4 billion yuan based on the 2025 net profit forecast [7][6].