Core Viewpoint - The company reported a revenue of 26.324 billion yuan for 2024, representing a year-on-year increase of 13%, while the net profit attributable to shareholders was 0.953 billion yuan, down 7% year-on-year [1] Financial Performance - In Q4 2024, revenue reached 8.186 billion yuan, showing a year-on-year increase of 20% and a quarter-on-quarter increase of 25%; net profit attributable to shareholders was 0.236 billion yuan, up 25% year-on-year and 28% quarter-on-quarter [1] - For Q1 2025, revenue was 6.261 billion yuan, reflecting a year-on-year increase of 10% but a quarter-on-quarter decrease of 24%; net profit attributable to shareholders was 0.256 billion yuan, up 15% year-on-year and 8% quarter-on-quarter [1] Development Trends - The company optimized its customer structure and released overseas capacity, leading to steady revenue growth; interior parts revenue increased by 17.64% to 13.504 billion yuan, while exterior parts revenue rose by 38.40% to 5.081 billion yuan, driven by orders from domestic brands like BYD and Geely [2] - The top five customers accounted for 33.12% of total sales in 2024, indicating a decrease in concentration from traditional joint venture clients [2] - Overseas business revenue grew by 18.49% to 5.640 billion yuan, with contributions from the Mexico factory and Southeast Asia base; the company expects to gradually turn around its overseas business following the divestment of six loss-making subsidiaries in Europe [2] Profitability and Cost Management - The gross margin for 2024 decreased by 0.22 percentage points to 16.6%, while Q1 2025 gross margin fell by 1.2 percentage points to 13.88%, primarily due to domestic pressure and new factory production [3] - The sales expense ratio decreased by 0.64 percentage points to 0.85%, while management and R&D expense ratios increased by 0.67 and 0.08 percentage points to 5.00% and 3.62%, respectively, due to merger integration and smart project R&D investments [3] - The company aims to enhance gross margin through product structure optimization, scale effects, and adjustments in overseas business [3] Strategic Initiatives - The company plans to drive high-quality development through business expansion and has a high dividend payout ratio of 40% to enhance shareholder returns; it aims to fill gaps in automotive seat products through acquisitions and develop solutions in chassis lightweighting and intelligence [3] - The company is focused on creating a comprehensive supply capability for vehicle interiors, chassis, and batteries through self-research and acquisitions [3] Profit Forecast and Valuation - The profit forecast for 2025 remains unchanged, with a new net profit estimate of 1.283 billion yuan for 2026; the current stock price corresponds to a price-to-earnings ratio of 9.5 times for 2025 and 9.0 times for 2026 [4] - The company maintains an outperform rating for the industry with a target price of 15.80 yuan, implying an upside potential of 11.7% from the current stock price [4]