TC(SH:603085) HUAXI Securities·2025-05-07 13:25Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company's passenger vehicle business is driving growth, while the recovery in aviation and the low-altitude economy are opening new opportunities [9] Summary by Sections Financial Performance - In 2024, the company's operating revenue was 2.23 billion, a year-on-year increase of 56.27%. However, the net profit attributable to the parent company was -16 million, a year-on-year decrease of 216.30%. The net profit after deducting non-recurring gains and losses was also -16 million, down 292.02%. In Q1 2025, the operating revenue was 539 million, up 46.74% year-on-year, with a net profit of 21 million, an increase of 108.77% year-on-year, and a net profit after deducting non-recurring gains and losses of 15 million, up 47.32% year-on-year [2]. Passenger Vehicle Business Growth - The passenger vehicle business achieved significant growth, with revenue reaching 1.05 billion in 2024, a year-on-year increase of 122.79%. New projects such as SAIC ZS32, Chery CX62D, and Dongfeng S59 contributed to this growth, effectively releasing production capacity and driving sales [3]. Traditional Business and Aviation Recovery - The traditional business, including engineering machinery and commercial vehicle seats, generated revenue of 718 million in 2024, a year-on-year increase of 5.9%. The aviation seat business also saw revenue of 217 million, up 52.89% year-on-year, benefiting from the recovery of the aviation industry [4]. Cost Control and R&D Investment - The company reported a significant increase in net profit in Q1 2025, reaching 2.09 million, with improved cost control. The sales, management, and R&D expense ratios were 1.67%, 8.53%, and 5.94%, respectively, showing a reduction in sales and management expenses while increasing R&D investment [5]. Global Expansion and New Growth Opportunities - The company is accelerating its global layout by establishing multinational subsidiaries and production bases in Singapore, Thailand, and Malaysia, enhancing its ability to respond to international customers and supply products locally [6][7]. Low-altitude Economy and eVTOL Business - The company is actively entering the low-altitude economy sector, leveraging its experience in vehicle and aviation seat manufacturing. It has formed a strategic partnership with Fengfei Aviation for the eVTOL aviation seat project, aiming to become a leading supplier in this niche market [8]. Earnings Forecast and Valuation - The company has adjusted its earnings forecast for 2025-2027, expecting operating revenues of 3.166 billion, 3.704 billion, and 4.075 billion, respectively. The net profit attributable to the parent company is projected to be 152 million, 225 million, and 282 million for the same period. The EPS is expected to be 0.38, 0.57, and 0.71, respectively. The closing price on May 7, 2025, was 11.84, corresponding to PE ratios of 30.84, 20.85, and 16.66 for the next three years [9][11].