KSHG(SH:605333) Soochow Securities·2025-04-30 02:20Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved significant revenue growth in 2024, with total revenue reaching 7.914 billion yuan, a year-on-year increase of 97.70%. The net profit attributable to shareholders was 670.34 million yuan, up 1,139.15% year-on-year [8] - The revenue growth was primarily driven by the core customer, Seres, which accounted for 53% of the company's revenue in 2024. The company has diversified its customer base, establishing strong relationships with international automotive manufacturers such as Volkswagen, Daimler, and Audi, enhancing its order stability and market resilience [8] - The company demonstrated improved profitability with a gross margin of 17.49%, an increase of 4.6 percentage points year-on-year, attributed to enhanced capacity utilization and scale effects. The net profit margin reached 8.47%, up 7.12 percentage points year-on-year [8] - The company is accelerating domestic substitution and has significant growth potential as a leading harness supplier. The new model M8 from Seres has received strong orders, which is expected to drive performance growth in the coming year [8] - The revenue forecast for 2025 is set at 10 billion yuan, with a projected net profit of 872 million yuan, reflecting a year-on-year growth of 30% [8] Financial Summary - In 2024, the company reported total revenue of 7.914 billion yuan and a net profit of 670.34 million yuan. The earnings per share (EPS) for 2024 is projected at 1.53 yuan [1][9] - The company expects to maintain a revenue growth rate of 26% in 2025 and 21% in 2026, with net profit growth rates of 30% and 25% respectively [8][9] - The company's financial metrics indicate a price-to-earnings (P/E) ratio of 19.63 for 2024, decreasing to 10.19 by 2027, suggesting an attractive valuation as earnings grow [1][9]