Daimay(SH:603730) HTSC·2025-05-09 02:40Investment Rating - The investment rating for the company is "Buy" with a target price of 10.81 RMB [8][9]. Core Views - The company reported a revenue of 6.38 billion RMB in 2024, representing a year-over-year increase of 8.8%, and a net profit of 800 million RMB, which is a 22.7% increase year-over-year, although it fell short of market expectations [1][2]. - The company is experiencing steady expansion in its overseas business, with a 9.9% increase in overseas revenue to 5.44 billion RMB in 2024 [4]. - The company is expected to benefit from the continued ramp-up of high-value products such as ceiling systems, which are projected to drive revenue growth [1][2]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 1.59 billion RMB, a year-over-year increase of 0.2%, and a net profit of 210 million RMB, which is a 7.1% increase year-over-year [1]. - The gross margin for 2024 slightly decreased by 0.04 percentage points to 26.8%, while Q1 2025 saw a gross margin of 27.7%, reflecting a quarter-over-quarter increase of 5.2 percentage points [3]. Product Performance - The company's core product, sunshades, generated a revenue of 3.94 billion RMB in 2024, with a year-over-year growth of 2.0%. The headrest project saw a significant revenue increase of 19.6% to 1.20 billion RMB [2]. - The ceiling and system integration products achieved a revenue of 600 million RMB, with an average price of 1,644 RMB per unit, significantly higher than the average prices of sunshades and headrests [2]. Global Strategy - The company is executing a globalization strategy, enhancing its production capabilities in Mexico and Vietnam, which helps mitigate trade risks. By April 2025, all products supplied to the U.S. were produced in Mexico, aligning with the USMCA [4]. - The company aims to expand its product offerings to existing clients like General Motors and Ford while continuing to supply new products to clients such as Tesla and Rivian [2][4]. Profit Forecast and Valuation - The net profit forecast for 2025 and 2026 has been revised down by 13% to 930 million RMB and 1.11 billion RMB, respectively. The estimated net profit for 2027 is projected to be 1.30 billion RMB [5]. - The company is assigned a price-to-earnings ratio of 19.3x for 2025, corresponding to the target price of 10.81 RMB [5].