YAPP(SH:603013) Huaxin Securities·2026-01-11 14:48Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first investment recommendation [1]. Core Insights - The company, a global leader in fuel systems, is actively transitioning towards new energy sectors, including aerospace and robotics, with significant overseas expansion [4][11]. - The company is the third largest global manufacturer of fuel systems and has established a strong presence with 27 production bases and 7 engineering centers across 11 countries [4][10]. - The revenue forecast for the company shows a steady growth trajectory, with expected revenues of 90.7 billion, 100.0 billion, and 108.2 billion yuan for 2025, 2026, and 2027 respectively [13]. Summary by Sections Company Overview - Established in 1988, the company specializes in automotive energy storage and thermal management systems, holding a leading position in the domestic market and ranking third globally in fuel systems [4]. - Major clients include over 60 brands such as Volkswagen, Ford, and Toyota, with fuel tank revenue projected to be 75.2 billion yuan in 2024, accounting for 93.1% of total revenue [4]. Product Development - The company is advancing in hybrid high-pressure fuel systems, with orders for these systems surpassing traditional fuel systems for the first time in 2024 [4]. - Development of automotive thermal management systems and battery pack housings is ongoing, with successful trials and new project acquisitions [5]. - The company is also focusing on fuel cell hydrogen storage systems, achieving significant advancements in product certification and market readiness [6][7]. Market Performance - The company’s performance is bolstered by the rising sales of hybrid vehicles, with PHEV sales expected to reach 3.697 million units in 2025, a year-on-year increase of 8.8% [8]. - The export of passenger vehicles is projected to grow significantly, providing structural growth opportunities for the company’s fuel systems business [8]. International Expansion - The company has a well-established overseas production capacity, with significant growth in revenue from international markets, which accounted for 42.6% of total revenue in the first half of 2025 [10]. - The company’s overseas subsidiaries have shown double-digit growth in supply performance, particularly in North America [10]. Acquisition and New Ventures - The acquisition of Winshang Technology, a leader in rotary transformers, for 5.78 billion yuan, aims to expand into aerospace and robotics sectors [11]. - Winshang Technology is recognized for its high-precision rotary transformers, with a projected market growth rate of 15.3% from 2025 to 2031 [11]. Financial Projections - Revenue and net profit forecasts indicate a positive growth outlook, with net profits expected to reach 5.8 billion, 6.5 billion, and 7.2 billion yuan from 2025 to 2027 [13]. - The company maintains a stable gross margin, with slight fluctuations projected over the coming years [9].