Wanma Tech(SZ:300698) EBSCN·2025-04-22 06:45Investment Rating - The report maintains a "Buy" rating for Wanma Technology, indicating a positive outlook for the company's future performance [6]. Core Insights - The company has experienced rapid growth in its vehicle networking business, achieving revenues of 2.55 billion yuan in 2024, a year-on-year increase of 43.56% [2]. - Despite the growth in core business, the overall net profit margin has declined due to increased sales and R&D expenses [2]. - Wanma Technology is positioned as a leading third-party connection management service provider in China, with over 14 million connections established by the end of 2024 [3]. - The company is actively expanding its overseas business, having established six data centers globally and successfully entering markets in Europe, the Middle East, and Central Asia [4]. Summary by Sections Financial Performance - In 2024, the company reported revenues of 5.61 billion yuan, a 7.72% increase from the previous year, and a net profit of 410 million yuan, a decrease of 35.92% [1]. - For Q1 2025, revenues reached 1.50 billion yuan, reflecting a significant growth of 78.24% year-on-year, while net profit increased to 50 million yuan, up 237.89% [1]. Business Segments - The vehicle networking segment generated 2.55 billion yuan in revenue for 2024, with a gross margin of 48.03%, down 18.48 percentage points from the previous year [2]. - The communication business saw revenues of 2.67 billion yuan, a decline of 9.95%, attributed to project implementation cycles [2]. Growth Prospects - The company has launched innovative technologies such as the "Aoyun" autonomous driving solution and the global vehicle connection ONE SIM, enhancing its competitive edge [3]. - Wanma Technology's strategic investments in data closure and intelligent computing capabilities are expected to benefit from the growing autonomous driving market [4]. Profitability and Valuation - The report projects a decline in net profit for 2025 and 2026, with estimates of 670 million yuan and 940 million yuan respectively, down from previous forecasts [4]. - The company is considered a rare player in the vehicle networking service sector, with significant growth potential driven by advancements in autonomous driving technology [4].