AIM(SZ:300446) HTSC·2026-03-31 08:08Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 33.35 [1]. Core Insights - The company reported a revenue of RMB 9.003 billion for 2025, representing a year-over-year increase of 15.72%, and a net profit attributable to shareholders of RMB 881 million, up 11.29% year-over-year. However, the Q4 performance showed a slight decline in revenue and net profit compared to the previous quarter, primarily due to increased competition in the automotive parts sector [1][2]. - The company is expected to benefit from a dual growth driver of "technical barriers + policy dividends," leveraging aerospace technology in oil and gas equipment and automotive smart cockpit sectors, while also expanding its large-volume drug column business, which is anticipated to sustain long-term growth [1][3]. Summary by Sections Automotive Parts - The automotive parts business achieved a revenue of RMB 8.261 billion in 2025, a year-over-year increase of 17.97%, accounting for 91.75% of total revenue. The company has focused on the electrification and intelligence opportunities in the automotive industry, with 69% of new projects related to new energy vehicles. Major clients include Geely, Changan, and Chery, with successful integration into the supply chains of new players like Huawei and NIO [2]. - The gross margin for the automotive parts business decreased by 1.23 percentage points to 17.45%, attributed to price competition and a general "annual decline" mechanism in the industry [2]. Oil and Gas Equipment - The oil and gas equipment segment reported stable performance with a revenue of RMB 541 million, a slight decline of 0.94% year-over-year, and a net profit of RMB 236 million, also down 0.93%. The civilian product segment faced challenges, particularly in electromechanical control products, which saw a 28.66% decline in revenue. However, high-value products like ultra-high-density perforating bullets saw order growth, and military product revenue increased by 63.17% [3]. - The company is enhancing its production capacity for large-volume drug columns to meet the needs of a key client, which is expected to open new growth avenues [3]. High-Performance Functional Materials - This traditional business segment faced significant external challenges, with a revenue of RMB 202 million in 2025, down 13.16%. The core product, thermal-sensitive magnetic tickets, saw a sharp decline of 60.58% in revenue due to the full electronicization of train tickets. Although the company is actively developing new products, the short-term impact of traditional business decline is significant [4]. Profit Forecast and Valuation - The company is projected to achieve net profits of RMB 976 million, RMB 1.175 billion, and RMB 1.408 billion for 2026, 2027, and 2028, respectively. The earnings per share (EPS) are expected to be RMB 1.15, RMB 1.39, and RMB 1.67 for the same years. The target price has been adjusted to RMB 33.35, reflecting the valuation expansion from the new growth point in the large-volume drug column business [5].