Ningbo Sunrise(SZ:002937) Huaxin Securities·2026-02-27 00:45Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [7]. Core Insights - The company, Xingsui Technology, is a leading precision manufacturing enterprise focusing on three main business areas: electronic connectors, structural components, and embedded injection molding integrated parts, primarily serving the new energy vehicle and consumer electronics sectors [3]. - The company has established a strong customer base, including notable global clients such as Verizon and Sony, and automotive electronics accounted for 52.32% of its revenue in the first half of 2025 [3]. - Despite a revenue decline of 10.13% year-on-year to 1.328 billion yuan and a net profit drop of 38.42% to 119 million yuan in the first three quarters of 2025, the company is poised for a performance turnaround [3]. Business Expansion and Growth Potential - The company is expanding its product offerings and production capacity, adapting to trends in automotive electrification and integration of electronic systems [4]. - It has successfully entered new product areas, including precision components for laser radar and millimeter-wave radar, and is expanding its production capabilities across six bases in China and Southeast Asia [4]. - The strategic focus on emerging industries such as liquid cooling and robotics is expected to enhance the company's competitive edge and revenue streams [5][6]. Financial Projections - The company is projected to achieve net profits of 142 million yuan, 201 million yuan, and 253 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.48 yuan, 0.67 yuan, and 0.85 yuan [7][9]. - The current stock price corresponds to a PE ratio of 55, 39, and 31 for the years 2025, 2026, and 2027, indicating potential valuation upside as the company capitalizes on its traditional business and new ventures [7].