FLAC(SZ:002536) Huaxin Securities·2025-12-30 09:12Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [3][7]. Core Insights - The company is a leading player in the automotive thermal management sector, showing steady growth in performance. It has been established for over 70 years and has maintained strong development momentum in both traditional and new energy sectors. Revenue is projected to grow from 2.665 billion yuan in 2020 to 4.723 billion yuan in 2024, with a CAGR of 15.38%. Correspondingly, net profit is expected to rise from 124 million yuan to 330 million yuan, with a CAGR of 27.61% [3][4]. - The penetration rate of new energy vehicles is increasing, with sales reaching 6.937 million units in the first half of 2025, a year-on-year growth of 40.3%. The company aims to upgrade to a provider of integrated thermal management modules and system solutions, leveraging its new production base in Thailand, which has a designed capacity of 1.5 million turbo shells and 1 million mechanical water pumps annually [4][5]. - The company is expanding its thermal management technology into various civilian sectors, including data center liquid cooling and robotics. It has established partnerships with over 40 leading companies in the industry, indicating a strong market presence and potential for growth in these new areas [5][6]. Financial Projections - The company forecasts net profits of 418 million yuan, 485 million yuan, and 565 million yuan for the years 2025, 2026, and 2027, respectively. The corresponding EPS is projected to be 0.73 yuan, 0.84 yuan, and 0.98 yuan, with current PE ratios of 43, 37, and 32 times [7][9]. - Revenue is expected to grow from 4.723 billion yuan in 2024 to 6.051 billion yuan in 2027, with growth rates of 15.3%, 3.4%, 10.6%, and 12.0% for the respective years [9][10]. - The company's return on equity (ROE) is projected to increase from 9.9% in 2024 to 13.4% in 2027, reflecting improved profitability [10].