Zhejiang Songyuan Automotive Safety Systems(SZ:300893) 东吴汽车黄细里团队·2025-05-06 00:59Core Viewpoint - The company reported its Q1 2025 results, showing strong revenue growth despite a quarter-over-quarter decline, indicating resilience in its business model and market position [2][3]. Financial Performance - In Q1 2025, the company achieved revenue of 536 million yuan, a year-on-year increase of 45.34%, but a quarter-on-quarter decrease of 18.96 [3]. - The net profit attributable to the parent company was 74 million yuan, reflecting a year-on-year growth of 20.47% and a quarter-on-quarter increase of 5.50% [3]. - The gross margin for Q1 2025 was 27.94%, down 2.74 percentage points year-on-year but up 1.38 percentage points quarter-on-quarter [3]. - The expense ratio for Q1 2025 was 14.36%, an increase of 2.22 percentage points year-on-year and 4.59 percentage points quarter-on-quarter [3]. Business Segments - The safety belt business is expected to see both volume and price increases due to competitive advantages in technology, cost, and service response, with a focus on high-performance safety belts [4]. - The steering wheel and airbag business is identified as a second growth curve, having started mass production in 2021 and gaining traction with major clients like Geely and SAIC-GM-Wuling [4]. Future Projections - The company maintains its net profit forecasts for 2025-2027 at 392 million yuan, 521 million yuan, and 698 million yuan, respectively, with corresponding EPS of 1.73 yuan, 2.30 yuan, and 3.09 yuan [6]. - The projected P/E ratios for 2025-2027 are 19.49x, 14.67x, and 10.95x, respectively, indicating a favorable valuation outlook [6].