KSHG(SH:605333) Guoxin Securities·2025-05-01 00:50Investment Rating - The report maintains an "Outperform" rating for the company [3][5][48] Core Viewpoints - 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 [2][3][32] - The company has successfully diversified its customer base, reducing reliance on its top clients, and has seen substantial revenue growth from new energy vehicle projects [2][33] - The company is focused on improving profitability through cost reduction and efficiency enhancements, supported by the ongoing expansion of its new energy customer projects [34][48] Summary by Sections Financial Performance - In Q1 2025, the company achieved revenue of 1.543 billion yuan, a year-on-year increase of 1% [8] - For 2024, the company reported revenue of 7.914 billion yuan, a year-on-year increase of 97.7%, and a net profit of 670 million yuan, up 1139.15% [8][20] - The gross margin for 2024 was 17.5%, an increase of 4.7 percentage points year-on-year, while the net margin was 8.5%, up 7.1 percentage points [20][23] Revenue and Profit Forecast - The company forecasts revenues of 9.521 billion yuan, 12.157 billion yuan, and 14.345 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 805 million yuan, 1.023 billion yuan, and 1.219 billion yuan [4][48] Market Position and Strategy - The company is enhancing its product offerings by developing high-voltage connectors and expanding its production capacity for high-pressure wiring harnesses [2][41] - The company has established partnerships with leading domestic and international electric vehicle manufacturers, which is expected to drive future growth [2][32] - The company is also focusing on digital transformation and smart manufacturing to improve operational efficiency and reduce costs [39][40] Customer Diversification - The company has successfully reduced the revenue contribution from its top five customers from 99% in 2015 to 80.22% in 2024, indicating a more diversified customer base [2][33] - The largest customer, Seres, accounted for 53% of revenue in 2024, highlighting the importance of strategic partnerships in the company's growth [2][33] Future Outlook - The company aims to leverage its existing resources to optimize customer structure and enhance its market presence in the new energy sector [36][42] - The report emphasizes the company's commitment to innovation and technology development to maintain its competitive edge in the automotive wiring harness market [41][47]