APG(SZ:002284) Great Wall Securities·2025-07-11 11:33Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [2][14]. Core Views - The company is experiencing high growth in its performance, with a significant increase in revenue and net profit projected for the coming years. The growth logic is continuously being validated [1][5]. - The company has secured major clients, including Geely and Changan, and is expanding its product offerings and production capacity, which is expected to drive rapid revenue growth [5][6]. Financial Performance Summary - Revenue Projections: The company is expected to achieve revenues of 38.74 billion, 42.60 billion, 52.77 billion, 64.70 billion, and 74.99 billion yuan from 2023 to 2027, with year-on-year growth rates of 3.3%, 10.0%, 23.9%, 22.6%, and 15.9% respectively [1][6]. - Net Profit Projections: The projected net profit for the same period is 970 million, 2.13 billion, 3.83 billion, 4.68 billion, and 5.60 billion yuan, with year-on-year growth rates of 42.7%, 119.6%, 80.0%, 22.1%, and 19.7% respectively [1][6]. - Return on Equity (ROE): The ROE is expected to increase from 3.5% in 2023 to 13.3% in 2027, indicating improved profitability [1][6]. - Earnings Per Share (EPS): The EPS is projected to rise from 0.13 yuan in 2023 to 0.76 yuan in 2027 [1][6]. - Valuation Ratios: The Price-to-Earnings (P/E) ratio is expected to decrease from 84.8 in 2023 to 14.7 in 2027, reflecting a more attractive valuation as earnings grow [1][6]. Business Development Summary - Client Base Expansion: The company has expanded its client base to include major global automotive manufacturers, with new orders totaling 3.7 billion yuan in the first half of 2025 [5][6]. - Product Development: The company has developed a complete chassis electronic control capability, with several products entering mass production and testing phases [5][6]. - Production Capacity: The establishment of a new production base in Morocco is expected to enhance the company's manufacturing capabilities significantly [5][6].