Core Viewpoint - The company has received a notification for a project involving key metal structural components from a domestic automotive enterprise, with an estimated total sales amount of approximately 280 million yuan over a lifecycle of five years [1] Group 1 - The project is expected to begin gradual mass production in the first quarter of 2027, with specific supply timelines to be determined based on contracts or agreements signed between the parties [1] - The notification does not constitute a formal order or sales contract, and a formal order can only be signed after customer evaluation and verification [1] - The estimated project amount is subject to various influencing factors, and while it is not expected to have a significant impact on the company's performance this year, it is anticipated to increase revenue in the future [1]

Core Viewpoint - The company announced that its wholly-owned subsidiary, Wuhan Tiancheng Automotive Seat Co., Ltd., received a notification for a seat assembly project from a leading domestic automotive enterprise, with production expected to start in April 2026 and a project lifecycle of three years [1] Group 1: Project Details - The project is expected to supply a total of 153,000 passenger vehicles over its lifecycle [1] - This collaboration reflects the company's ongoing expansion and deepening presence in the passenger vehicle market [1] - The project notification does not constitute a substantial order, and actual sales will depend on the client's vehicle production, introducing uncertainty [1] Group 2: Impact on Financial Performance - The project is anticipated to have a positive impact on the company's future operating performance, although it will not significantly affect the current year's results [1] - The expected production start in April 2026 indicates a longer-term growth opportunity for the company in the automotive sector [1]

Group 1 - The company has received a notification from a well-known domestic automotive manufacturer, designating it as a supplier for a series of engine cylinder block semi-finished products [1][3] - The project is expected to commence mass production in the fourth quarter of 2025, with a total sales amount projected between RMB 450 million and 500 million over its lifecycle of five years [1][3] - This designation reflects the company's recognized R&D capabilities, product quality, and manufacturing strength, enhancing its influence and market share in the passenger vehicle sector [1] Group 2 - The project is not anticipated to have a significant impact on the company's current year performance, but it is expected to positively influence future revenue and operational results [1][3] - The notification does not constitute a final order or sales contract, and actual supply volumes will depend on formal orders [3] - Factors such as automotive industry policies and market demand may affect production plans of automotive manufacturers, leading to uncertainties in final supply volumes [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of —— yuan over the next six months [1]. Core Insights - The company is actively expanding its growth opportunities in the screw rod sector and has shown strong revenue and profit growth in recent quarters [7]. - The company reported a revenue of 680.28 million yuan for 2024, representing a year-on-year increase of 16.63%, and a net profit attributable to the parent company of 211.61 million yuan, up 14.76% year-on-year [7]. - The company is focusing on enhancing its profitability and has achieved a gross margin of 51.9% in 2024, with a net margin of 32.3% [7]. Financial Performance Summary - **Revenue Forecast**: The company expects revenues to grow from 680.28 million yuan in 2024 to 1,507.60 million yuan by 2027, with compound annual growth rates (CAGR) of 32.4% [2][12]. - **Net Profit Forecast**: The net profit is projected to increase from 211.61 million yuan in 2024 to 490.86 million yuan in 2027, with significant growth rates in the coming years [2][12]. - **Earnings Per Share (EPS)**: EPS is expected to rise from 1.55 yuan in 2024 to 3.60 yuan in 2027 [2][12]. - **Return on Equity (ROE)**: The ROE is forecasted to improve from 15.72% in 2024 to 21.09% in 2027 [2][12]. Business Segment Performance - **Valve Transmission Group**: Revenue from this segment is expected to grow from 500.17 million yuan in 2024 to 1,009.46 million yuan by 2027, with a gross margin of 56% by 2025 [9]. - **Cold Forged Precision Wire**: This segment is projected to see revenue growth from 40 million yuan in 2024 to 190.44 million yuan in 2027, with an improving gross margin reaching 10% by 2027 [9]. - **Overseas Business Growth**: The company has reported a 47% year-on-year increase in overseas revenue, driven by new projects and increased production capacity [7]. Strategic Initiatives - The company is investing approximately 500 million yuan in establishing a new joint venture focused on precision transmission components, which is expected to enhance its market position in the screw rod sector [7].