Wuxi Zhenhua(SH:605319) EBSCN·2025-04-28 03:44Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance driven by its stamping and electroplating businesses [3]. Core Views - The company is expected to achieve a total revenue of 2.53 billion yuan in 2024, representing a year-on-year increase of 9.2%, and a net profit attributable to shareholders of 378 million yuan, reflecting a growth of 36.3% [1]. - The growth in revenue and profit in Q4 2024 is attributed to increased sales of Xiaomi's supporting models and a significant decrease in raw material prices [1]. - The company's gross margin is projected to improve due to the expansion of its stamping business and the growth of its electroplating business, with a gross margin of 25.9% expected for 2024 [1][2]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 800 million yuan, up 14.2% year-on-year and 30.6% quarter-on-quarter, with a net profit of 130 million yuan, increasing by 15.2% year-on-year and 38.4% quarter-on-quarter [1]. - The gross margin for 2024 is expected to be 25.9%, with Q4 2024 gross margin reaching 28.0% [1][10]. Business Segments - The stamping business revenue is projected to grow by 16.6% year-on-year, while the electroplating business is expected to see a revenue increase of 17.6% [1]. - The company has established a multi-location operational layout to enhance customer stickiness and is investing in capacity upgrades for its stamping business [2]. Future Projections - The report forecasts net profits of 460 million yuan for 2025 and 521 million yuan for 2026, with an additional projection of 590 million yuan for 2027 [3][4]. - The company is expected to benefit from the recovery in sales from SAIC and the launch of more new energy projects, which will enhance profitability [1][2].