Core Viewpoint - Lixun Precision's communication and automotive businesses are experiencing accelerated growth, supported by its platform capabilities that aid downstream expansion [1] Group 1: Business Performance - Some investors perceive the company as a leader in the Apple supply chain, with profits and performance primarily influenced by a single major client's growth, which is expected to slow down in the future [1] - The company's non-A business in consumer electronics is showing steady growth with high profit margins, further strengthened by the consolidation of Wentai's product integration business [1] Group 2: Growth Potential - Lixun's automotive and communication sectors have begun to enter a phase of rapid expansion, with profit contributions expected to increase significantly [1] - The company's integrated capabilities in world-class components, modules, and assembly, along with global supply chain management and cost control advantages, are being leveraged to penetrate leading clients in the communication and automotive industries [1] Group 3: Market Position and Valuation - The communication business is making significant inroads with major overseas CSPs and chip manufacturers, while the automotive business is anticipated to grow into a global leader in automotive wiring harnesses following the consolidation of Laine [1] - Adjustments to profit forecasts are based on changes in downstream customer sales, overseas expansion of the communication business, Wentai's product integration, and Laine's consolidation, with a target price set at 72.00 yuan based on a comparable company PE valuation of 32 times for 2025 [1]

Core Viewpoint - Lixun Precision's communication and automotive businesses are experiencing accelerated growth, supported by its platform capabilities that aid downstream expansion [1] Group 1: Business Performance - Some investors perceive the company as a leader in the Apple supply chain, with profits and performance primarily influenced by a single major client's growth, which is expected to slow down in the future [1] - The company's non-A business in consumer electronics is showing steady growth with high profit margins, further strengthened by the consolidation of Wentai's product integration business [1] Group 2: Growth Potential - Lixun's automotive and communication sectors have begun to enter a phase of rapid expansion, with profit contributions expected to increase significantly [1] - The company's integrated capabilities in world-class components, modules, and assembly, along with global supply chain management and cost control advantages, are being leveraged to penetrate leading clients in the communication and automotive industries [1] Group 3: Market Position and Valuation - The communication business is making significant inroads with major overseas CSPs and chip manufacturers, while the automotive business is anticipated to grow into a global leader in automotive wiring harnesses following the consolidation of Laine [1] - Adjustments to profit forecasts are based on changes in downstream customer sales, overseas expansion of the communication business, and the integration of Wentai's product offerings [1] - The target price is set at 72.00 yuan, based on a comparable company PE valuation of 32 times for 2025, maintaining a "buy" rating [1]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company achieved a revenue of 695 million yuan in 2024, representing a year-on-year growth of 48.3%, and a net profit of 45 million yuan, up 10.3% year-on-year, which met expectations [7] - The company plans to distribute a cash dividend of 3.0 yuan per share (including tax) for 2024, with a distribution ratio of 56.71% [7] - In Q1 2025, the company reported a revenue of 162 million yuan, a year-on-year increase of 40.1%, and a net profit of 9 million yuan, up 8.8% year-on-year, slightly below expectations [7] - The company is focusing on a major client strategy and has formed partnerships with emerging brands to drive revenue growth, with domestic revenue reaching 642 million yuan in 2024, a 40.5% increase [7] - The company is enhancing its raw material research and investment to improve integrated capabilities and increase the value-added of its OEM services [7] - The profit forecast for 2025-2027 has been adjusted downwards, with expected net profits of 69 million yuan, 91 million yuan, and 115 million yuan respectively [7] Financial Data and Profit Forecast - Total revenue is projected to reach 1,009 million yuan in 2025, with a year-on-year growth rate of 45.2% [6] - The gross profit margin is expected to be 26.4% in 2025, with a net profit margin of 6.5% [6] - The company’s return on equity (ROE) is forecasted to be 15.6% in 2025 [6] - The earnings per share (EPS) is projected to be 0.81 yuan in 2025 [6]