ADD(SH:603089) NORTHEAST SECURITIES·2025-08-04 07:53Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][5]. Core Views - The company focuses on the overseas automotive aftermarket shock absorber business, with revenue growth driven by capacity expansion. The company has developed comprehensive manufacturing and service capabilities for suspension strut assemblies and has strong vehicle matching capabilities [1]. - The company is expected to achieve significant revenue growth in 2024, with projected revenues of 1.64 billion yuan for shock absorbers, 425 million yuan for engine sealing parts, and 205 million yuan for rubber shock absorbers, reflecting year-on-year growth rates of 32.09%, 20.24%, and 50.4% respectively [1]. - The company has announced a fundraising plan to raise up to 450 million yuan, primarily for expanding domestic shock absorber production capacity [2]. - The company has established a smart manufacturing base in Thailand, which is expected to enhance its competitiveness and market share in the international market [2]. - The company has developed a lean information management system to adapt to the characteristics of the aftermarket, allowing for efficient production management and strong negotiation capabilities [2]. Financial Summary - The company’s projected revenues for 2024 are 2.30 billion yuan, with a year-on-year growth of 30.98%. The net profit attributable to the parent company is expected to be 71 million yuan, reflecting a growth of 21.39% [4][14]. - The forecasted net profits for 2025, 2026, and 2027 are 161 million yuan, 201 million yuan, and 256 million yuan respectively, with corresponding P/E ratios of 22.16, 17.77, and 13.95 [3][4]. - The company’s gross margin is projected to be 23.38% in 2024, with a slight decrease of 1.25 percentage points year-on-year [1]. Market Data - As of August 1, 2025, the company's closing price was 14.89 yuan, with a target price of 21 yuan for the next six months [5]. - The company has a total market capitalization of approximately 3.57 billion yuan [5]. Growth Indicators - The company is expected to maintain strong revenue growth rates, with projected growth rates of 31.0% in 2024, 24.3% in 2025, 18.0% in 2026, and 13.0% in 2027 [14]. - The net profit growth rates are forecasted at 21.4% for 2024, 125.7% for 2025, 24.8% for 2026, and 27.4% for 2027 [14].