WBTL(603596) Changjiang Securities·2025-05-09 04:43Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company benefits from the ramp-up of new projects in smart electronic control products and the growth in sales from downstream customers, leading to a significant revenue increase. In Q1 2025, the company achieved revenue of 2.64 billion yuan, a year-on-year increase of 41.8%, and a net profit attributable to shareholders of 270 million yuan, up 28.8% year-on-year. The outlook for the company's profitability is positive, with expectations of becoming a global platform enterprise in chassis systems [2][10]. Summary by Sections Financial Performance - In Q1 2025, the company reported revenue of 2.64 billion yuan, representing a 41.8% increase year-on-year, while the net profit attributable to shareholders was 270 million yuan, reflecting a 28.8% year-on-year growth. The gross margin for Q1 was 18.0%, down 2.3 percentage points year-on-year, influenced by rising raw material costs and market competition [2][10]. Product and Market Development - The company has seen a significant increase in the sales of smart electronic control products, with a total of 146,200 units sold in Q1 2025, up 58% year-on-year. Additionally, lightweight braking components sales reached 3.438 million units, a 23% increase year-on-year, and disc brake sales were 933,000 sets, up 36% year-on-year. The company is also expanding its product offerings, with 120 new project approvals in Q1 2025 [10]. Future Outlook - The company is expected to continue its growth trajectory with the acceleration of new product launches and ongoing capacity expansion. Projections for net profit attributable to shareholders for 2025-2027 are 1.59 billion, 2.01 billion, and 2.49 billion yuan, respectively, with corresponding price-to-earnings ratios of 22.0X, 17.4X, and 14.1X [10].