SINYUAN ZM(SZ:301398) China Post Securities·2025-12-22 07:16Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [2]. Core Insights - The company, Xingyuan Zhuomei, is a leader in the magnesium alloy lightweighting sector, with nearly 20 years of experience in alloy die-casting, establishing a strong technological barrier through a comprehensive production capability [5][6]. - The demand for die-cast components is expected to grow due to the development of the electric vehicle industry, with the company focusing on lightweighting solutions that include magnesium and aluminum alloy die-cast parts for critical automotive components [5][6]. - The company has secured over 4 billion yuan in orders, with a dual capacity layout in both domestic and overseas markets, indicating strong market recognition and binding in the core components of electric vehicles [6][43]. Financial Projections - Revenue forecasts for 2025-2027 are projected at 434 million, 704 million, and 941 million yuan respectively, with net profits expected to be 71 million, 108 million, and 137 million yuan, reflecting a compound annual growth rate (CAGR) of 19.42% for net profit [7][10]. - The estimated price-to-earnings (P/E) ratios for 2025-2027 are 75, 49, and 39, respectively, suggesting a favorable growth outlook compared to peer valuations [7]. Company Overview - The latest closing price of the company's stock is 47.22 yuan, with a total market capitalization of 5.3 billion yuan [4]. - The company has a stable shareholding structure, with the largest shareholder being Ningbo Yuanxingxiong Holdings, which holds 60.41% of the shares [15][20]. Market Position and Strategy - The company has established a comprehensive technical system for magnesium alloy manufacturing, covering mold design, casting, post-processing, and machining, which enhances its competitive edge [34]. - The electric vehicle market is experiencing significant growth, with the penetration rate of new energy vehicles in China rising from 5.2% in 2020 to 47.4% in 2025, driving demand for lightweight components [37][39]. - The company is actively expanding into the humanoid robot sector, leveraging its expertise in lightweight materials to develop components for this emerging market [46][49].