Wuxi Zhenhua(SH:605319) EBSCN·2025-04-28 04:35Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on 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 scale effects from its stamping business and the continued profitability of its electroplating segment [1][2]. Summary by Sections Financial Performance - In Q4 2024, the company's revenue reached 800 million yuan, up 14.2% year-on-year and 30.6% quarter-on-quarter, with a net profit of 130 million yuan, marking a year-on-year increase of 15.2% and a quarter-on-quarter increase of 38.4% [1]. - The gross margin for 2024 is expected to be 25.9%, an increase of 0.8 percentage points year-on-year, with Q4 2024 gross margin at 28.0%, up 1.9 percentage points year-on-year and 2.3 percentage points quarter-on-quarter [1]. Business Segments - The stamping business is projected to grow by 16.6% in revenue with a gross margin increase of 8.25 percentage points to 16.8% in 2024 [1]. - The electroplating business is expected to see a revenue increase of 17.6% and a gross margin of 80.5%, up 1.1 percentage points year-on-year [1]. - The company is expanding its production capacity and customer base, with significant investments planned for new projects in automotive parts [2]. Future Projections - The report forecasts net profits of 460 million yuan for 2025, 521 million yuan for 2026, and 594 million yuan for 2027, indicating a strong growth trajectory [3][4]. - The target price for the company's stock has been raised to 36.20 yuan, based on a price-to-earnings ratio of 20 times the estimated earnings for 2025 [3].