NJEC(SH:600699) ZHESHANG SECURITIES·2025-05-22 12:33Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The core logic of the report highlights the recovery of automotive safety profitability, the arrival of mass production cycles for new automotive electronic technologies, and the potential growth from humanoid robots [7] - The company is positioned as a leading Tier 1 supplier in global automotive safety and electronics, with a strong order backlog ensuring future growth [7] Summary by Sections Company Overview - The company has established itself as a top Tier 1 supplier in automotive safety and electronics through global acquisitions and continuous asset integration [13] - The company has a significant market share in passive safety (second globally) and cockpit domain control systems (fourth globally) [19] Financial Analysis - The company is expected to achieve revenues of 55.864 billion in 2024, with a projected growth to 71.023 billion by 2027, reflecting a compound annual growth rate (CAGR) of 6.9% [2] - The net profit attributable to the parent company is forecasted to grow from 960 million in 2024 to 2.161 billion by 2027, with a CAGR of 31% [2] - The company has secured a record high of 839 billion in new orders in 2024, with a focus on new energy vehicle projects [46] Automotive Safety - The average selling price (ASP) for passive safety products is expected to increase, with the 2024 ASP in China projected at 200 USD and in high-income markets at 340 USD [7] - The company is optimizing production capacity, which is expected to drive an increase in gross margins [7] Automotive Electronics - The company is focusing on hardware upgrades in the automotive sector, with significant growth expected in smart cockpit and intelligent driving domain controllers [7] - The global market for smart cockpit systems is projected to grow at an annual rate of 14% to reach 357 billion by 2028 [7] Humanoid Robots - The company is collaborating with partners to develop humanoid robot components, positioning itself in the "automotive + robotics" Tier 1 space [7] - The industry for humanoid robots is still in its early stages, presenting significant opportunities for domestic substitution [7] Profit Forecast and Valuation - The company is expected to maintain a low valuation compared to peers in automotive safety and electronics, with projected P/E ratios decreasing from 28.4 in 2024 to 12.6 by 2027 [2] - The report anticipates a significant increase in net profit from 1.534 billion in 2025 to 2.161 billion in 2027, indicating strong growth potential [2]