Hwaway Technology(SZ:001380) Tianfeng Securities·2025-05-31 10:20Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6]. Core Views - The company is expected to achieve significant revenue growth in 2024, with projected revenue of 1.86 billion yuan, representing a year-on-year increase of 49.67%. The net profit attributable to the parent company is forecasted to be 226 million yuan, up 38.00% year-on-year [1]. - In Q1 2025, the company reported revenue of 450 million yuan, a 47.36% increase year-on-year, and a net profit of 64 million yuan, reflecting a 57.43% year-on-year growth [1]. - The company is expanding its production capacity, particularly in the suspension system components sector, which is projected to generate 1.63 billion yuan in revenue for 2024, a 60.2% increase year-on-year [2]. - The company has established strong relationships with major automotive manufacturers, enhancing its competitive edge and customer base, which includes well-known brands such as BYD, Geely, and NIO [3]. Financial Performance Summary - The company is projected to achieve revenues of 2.29 billion yuan in 2025, with a growth rate of 23.05%, and net profit of 267 million yuan, reflecting a growth rate of 17.84% [4]. - The weighted average return on equity (ROE) for 2024 is expected to be 14.19%, with a slight decrease of 0.54 percentage points year-on-year [1]. - The company's earnings per share (EPS) is projected to increase from 0.84 yuan in 2024 to 0.99 yuan in 2025 [4]. Capacity Expansion and Investment - The company has invested 1.6 billion yuan in new production lines for high-strength spring steel and automotive suspension springs, with expected benefits of 28 million yuan in 2024 [2]. - Additional investments of 2.5 billion yuan have been made in projects aimed at producing high-performance springs and intelligent production lines for electric vehicle suspension springs [2]. Customer Relationships and Market Position - The company has developed a robust customer structure, collaborating with leading automotive manufacturers and parts suppliers, which supports stable revenue growth [3]. - The company's advanced production technology for spring steel wire positions it well to meet the technical demands of major automotive clients [3].