KSHG(SH:605333) Guoxin Securities·2025-04-30 11:05Investment Rating - The investment rating for the company is "Outperform the Market" [5][48] Core Views - The company is a leading player in the automotive wiring harness industry, with significant growth driven by the increasing demand for wiring harnesses in the electric vehicle market. The company is focusing on cost reduction and efficiency improvements to enhance profitability [3][48] - The revenue for 2024 is projected to be 79.14 billion yuan, representing a year-on-year increase of 97.70%, with a net profit of 6.70 billion yuan, reflecting a staggering growth of 1139.15% [8][48] - The company is expanding its product offerings, including high-voltage connectors and specialized wiring harnesses, to meet the needs of new energy vehicle manufacturers [2][32] Summary by Sections Financial Performance - In Q1 2025, the company achieved revenue of 1.543 billion yuan, a year-on-year increase of 1%, while the net profit was 93 million yuan, a decrease of 7.63% year-on-year [8][20] - The gross margin for 2024 was 17.5%, up 4.7 percentage points year-on-year, and the net margin was 8.5%, up 7.1 percentage points year-on-year [20][23] - The company expects revenues of 95.2 billion yuan, 121.6 billion yuan, and 143.5 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 8.1 billion yuan, 10.2 billion yuan, and 12.2 billion yuan for the same years [3][48] Business Strategy - The company is focusing on expanding its customer base, successfully partnering with various new energy vehicle manufacturers, which has diversified its client structure [2][33] - The company is enhancing its technological capabilities by developing high-voltage connectors and specialized wiring harnesses, which are expected to drive future growth [2][41] - The company is also investing in digital transformation and smart manufacturing to improve operational efficiency and reduce costs [39][40] Market Position - The company has established itself as a key supplier for major automotive manufacturers, with a significant portion of its revenue coming from new energy vehicle projects [2][32] - The company is actively pursuing international market opportunities, with overseas revenue increasing by 227.08% year-on-year [44][48] - The company aims to strengthen its position in the automotive wiring harness market while exploring new applications in other industries, such as drones and robotics [42][47]