FLAC(SZ:002536) Soochow Securities·2025-05-07 00:23Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is a leading player in the new energy thermal management sector, with non-automotive business entering a period of rapid growth [9]. - The company has a rich product matrix, including traditional automotive parts and new energy components, which solidifies its market leadership [15]. - The company is expected to achieve significant revenue and profit growth in the coming years, driven by its expansion into new energy and non-automotive sectors [9][15]. Summary by Sections 1. Leading in Thermal Management, New Energy Business Driving Record Performance - The company has over 60 years of experience in the automotive parts industry, transitioning to new energy sectors since 2016 [15]. - In 2024, the company is projected to achieve revenue of 4.723 billion yuan, a year-on-year increase of 15.34%, and a net profit of 329.62 million yuan, up 25.92% [9][24]. 2. Core Business Continues to Improve, Diverse Thermal Management Products - The company maintains a strong market position in mechanical water pumps, with a market share of 25% [9]. - The demand for exhaust manifolds is increasing due to the dual carbon goals, prompting the company to innovate with heat-resistant steel products [9][46]. - The company’s turbocharger shell sales are expected to rise significantly due to the increasing penetration of hybrid vehicles [9][54]. 3. Continuous Expansion in New Energy and Civilian Sectors, Accelerating Internationalization - The new energy business is expected to generate 5.26 billion yuan in revenue in 2024, a year-on-year increase of 40.44% [9][63]. - The company is expanding its international presence with new factories in Southeast Asia, which are expected to contribute significantly to revenue [9][63]. - The company has a robust pipeline of electronic water pump products, with a total production capacity of 900 million units, and is well-positioned to meet the growing demand in the new energy vehicle market [9][70]. 4. Profit Forecast and Investment Recommendations - The company is projected to achieve revenues of 5.447 billion yuan in 2025 and 6.268 billion yuan in 2026, with net profits of 454.71 million yuan and 630.84 million yuan respectively [1][9]. - The current market valuation corresponds to a P/E ratio of 20 for 2025, indicating a favorable investment opportunity as the company transitions into new energy and civilian sectors [9].