ANHUI ZHONGDING(SZ:000887) Tianfeng Securities·2025-05-13 08:18Investment Rating - The report gives a "Buy" rating for the company with a target price of 22.59 CNY, based on a PE ratio of 23 for 2025 [6]. Core Views - The company is positioned as a leader in the automotive parts industry, with a strong foundation in traditional automotive components and a strategic expansion into the robotics and new energy sectors, which are expected to drive future growth [2][3][13]. - The company has shown consistent revenue growth and profitability, with projected revenues of 21.92 billion CNY in 2025 and a net profit of 1.58 billion CNY, reflecting a significant increase from previous years [3][5]. Summary by Sections Company Overview - Established in 1980, the company has expanded through overseas acquisitions since 2008, becoming a global leader in non-tire rubber products and automotive components [13][19]. - The company has a stable shareholding structure, with the main controller holding a significant portion of shares, ensuring strategic direction and stability [15]. Automotive Parts Business - The company has a solid base in traditional businesses such as damping and sealing systems, which continue to grow steadily, contributing to stable market share and revenue [19][20]. - The company is actively expanding into three incremental businesses: air suspension, lightweight chassis, and thermal management systems, which are expected to be key growth drivers [24][27]. New Energy and Robotics - The new energy vehicle market presents both challenges and opportunities, with the company leveraging its technological advantages to capture market share in sealing and damping systems [2][32]. - The company has established a subsidiary focused on robotics, aiming to integrate its automotive technology into the robotics sector, with several strategic partnerships already in place [3][25]. Financial Performance - The company has demonstrated strong financial performance, with revenues increasing from 125.8 billion CNY in 2021 to 172.44 billion CNY in 2023, and a projected revenue of 188.54 billion CNY in 2024 [29][32]. - The net profit for 2024 is expected to be 1.25 billion CNY, reflecting a growth rate of 10.63% compared to the previous year [5][29]. Market Position and Strategy - The company has a robust market position, with a focus on high-end clients and a significant portion of revenue coming from top automotive manufacturers [33][35]. - The international strategy has begun to yield results, with revenue contributions from Asia, Europe, and America showing balanced growth [36].