Dongxing Securities·2025-07-22 10:13Core Insights - The report highlights the strategic move of the company to establish an overseas subsidiary and invest in a production base in Morocco, with a total planned investment of up to 20 million USD, aimed at expanding its international market presence [7] - The company has successfully entered the supply chains of major automotive manufacturers, including Renault and Stellantis, indicating a strong foothold in the automotive sector [7] - The company maintains a robust financial position with a net profit margin consistently above 10% since 2022, and cash assets totaling 1.02 billion RMB as of 2024 [8] Company Business Overview - The company is actively implementing a "going out" strategy to enhance its global industrial layout, which is expected to bring new growth opportunities [7] - The company has a strong cost and expense control capability, which has allowed it to sustain a stable profitability [8] - The forecasted net profit for the company from 2025 to 2027 is projected to be 221 million, 256 million, and 299 million RMB respectively, with corresponding EPS of 0.99, 1.15, and 1.34 RMB [9] Industry Insights - The report emphasizes the growing demand for intelligent connected vehicles, which is driving the need for high-performance communication modules [11] - The market for wireless communication modules in intelligent connected vehicles is expected to grow significantly, with a projected compound annual growth rate of 21% from 2020 to 2024, reaching 5 billion RMB by 2024 [11] - The company is positioned to benefit from this trend, having established a leading market share of 35.1% in the 5G vehicle-mounted module sector as of 2024 [12]