Shanghai YanPu(605128) Minsheng Securities·2025-04-29 03:42Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 41.02 CNY per share [5]. Core Views - The company reported a steady growth in Q1 2025, with a revenue of 433 million CNY, a year-on-year decrease of 24.0% and a quarter-on-quarter decrease of 44.4%. However, the net profit attributable to the parent company increased by 2.3% year-on-year and 14.9% quarter-on-quarter, attributed to lean production management and improved efficiency [1]. - The automotive seating business is expected to grow, with the core R&D team fully in place and a high-standard laboratory operational, engaging in deep cooperation with several well-known automotive companies [1][2]. - The company has expanded its customer base significantly, moving from the Lear system to covering mainstream Tier 1 suppliers, with new orders expected to contribute 6.059 billion CNY in revenue over five years, representing 53.2% of the company's total revenue in 2024 [2]. - The company is diversifying into railway container projects, having won a bid worth 587 million CNY, and is preparing for high-speed rail seating supply, which opens up long-term growth opportunities [3]. Summary by Sections Financial Performance - In Q1 2025, the company's gross margin reached 19.1%, an increase of 6.1 percentage points year-on-year, benefiting from product structure optimization and lean production improvements [2]. - The company’s revenue projections for 2025-2027 are 3.139 billion CNY, 4.091 billion CNY, and 5.114 billion CNY, respectively, with net profits of 204 million CNY, 297 million CNY, and 386 million CNY [4][3]. Customer Expansion - The company has established long-term partnerships with major automotive suppliers and has accelerated customer expansion, leading to multiple project confirmations and significant revenue contributions from new orders [2][3]. Growth Opportunities - The company is leveraging its position as a leader in automotive seating frames to capture market share and is actively expanding into seating assembly and railway sectors, which are expected to enhance its long-term growth potential [3].