LZJT(300428) HTSC·2025-04-28 07:09Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 21.42 [6][7]. Core Views - The company reported Q1 2025 revenue of RMB 7.183 billion, representing a year-over-year increase of 20.39% but a quarter-over-quarter decrease of 8.81%. The net profit attributable to shareholders was RMB 162 million, down 40.96% year-over-year and down 24.24% quarter-over-quarter [1]. - The company's global layout, particularly its production facilities in Thailand and Mexico, is expected to effectively mitigate the negative impacts of U.S. tariffs. The company is also actively developing products in emerging fields, which are seeing widespread applications [3]. - The company’s gross margin for Q1 2025 was 8.83%, showing a year-over-year decline of 0.83 percentage points and a quarter-over-quarter decline of 0.49 percentage points [2]. Summary by Sections Financial Performance - For Q1 2025, the company achieved a revenue of RMB 7.183 billion, with a year-over-year growth of 20.39% and a quarter-over-quarter decline of 8.81%. The net profit attributable to shareholders was RMB 162 million, down 40.96% year-over-year and down 24.24% quarter-over-quarter. The adjusted net profit, excluding accounting estimate changes, was RMB 139 million, reflecting a growth of 16.45% year-over-year [1][2]. - The company’s gross margin for Q1 2025 was reported at 8.83%, which is a decrease of 0.83 percentage points year-over-year and a decrease of 0.49 percentage points quarter-over-quarter [2]. Global Expansion and Emerging Fields - The company has established factories in Thailand and Mexico, with the Thai recycling aluminum alloy project expected to commence production in 2024. The U.S. tariff on Thailand is relatively low at 10%, and Mexico is not subject to U.S. tariffs, which positions the company to benefit from increased market share in the U.S. automotive supply chain [3]. - The company is actively pursuing product development in emerging fields, including heat-treated alloy materials that have achieved large-scale production. Its high-strength, non-heat-treated die-casting aluminum alloys are currently being validated in robotics and drone applications [3]. Profit Forecast and Valuation - The profit forecast for the company remains unchanged, with expected net profits of RMB 800 million, RMB 1.069 billion, and RMB 1.34 billion for 2025, 2026, and 2027 respectively. The corresponding EPS for these years is projected to be RMB 1.26, RMB 1.69, and RMB 2.12 [4]. - The company is assigned a PE ratio of 17 times for 2025, with a target price set at RMB 21.42, based on the average PE of comparable companies being 21.1 times [4].