Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company's performance in 2024 met expectations, with a revenue of 3.6 billion and a net profit of 430 million, reflecting a year-on-year decrease of 8% and 14% respectively. In Q1 2025, revenue increased by 12% year-on-year to 870 million, while net profit decreased by 17% [1]. - The growth in revenue for Q1 2025 was driven by increased demand from major clients such as Tesla, Li Auto, NIO, and BYD, as domestic new energy vehicle sales rose by 47% year-on-year [1]. - The company is focusing on enhancing its technological and research capabilities, particularly in mold development and stamping welding technology, which are crucial for maintaining its competitive edge in the automotive parts industry [2]. - The company is expanding its business layout by venturing into integrated die-casting, hot forming, and composite materials, with expectations for large-scale production of integrated die-casting by the second half of 2025 [2]. Financial Summary - The company reported a revenue of 3.6 billion in 2024, with a projected revenue of 4.1 billion in 2025, reflecting a growth rate of 15% year-on-year. The net profit is expected to recover to 498 million in 2025, with a growth rate of 17.3% [4]. - The earnings per share (EPS) for 2025 is projected to be 2.09, with a price-to-earnings (P/E) ratio of 13.5 [4]. - The company’s gross margin for Q1 2025 was 20.9%, an increase of 2.2 percentage points from the previous quarter, indicating improved profitability [1].

Core Viewpoint - The automotive parts industry will continue to focus on electrification and intelligence in 2025, with integrated die-casting products expected to expand and become more prevalent, reshaping the body structure parts market [1] Company Performance - In 2024, the company reported revenue of 3.592 billion yuan, a year-on-year decrease of 8.19%, and a net profit of 425 million yuan, down 14.43% year-on-year due to factors such as fluctuations in downstream product sales and increased asset depreciation [1] - The company is actively extending its industrial chain by advancing integrated die-casting, hot forming, electrophoretic painting, and composite materials businesses, optimizing its product structure [1] Capacity Layout - The company has established production facilities in multiple locations, achieving an 80% utilization rate in its stamping and welding business [2] - Four integrated die-casting production lines have been set up in Jiangsu Yancheng and Anhui Liu'an, with an additional line under construction in Jiangsu Changzhou [2] - A new project in Jinhua City with a total investment of 1 billion yuan aims to produce 200,000 sets of integrated automotive body structure parts annually [2] Future Business Outlook - The integrated die-casting and hot forming businesses have secured multiple customer orders, with large-scale production expected to begin in the second half of 2025, leading to a significant increase in capacity utilization by 2026 [2] Market Position - Major clients include Tesla, Li Auto, NIO, Leap Motor, BYD, SAIC Group, and others, with ongoing efforts to enhance the customer structure [3] - The impact of the U.S. "reciprocal tariff" policy on the company's business is minimal, with only 4.01% of total revenue coming from export business, and approximately 3.6% from exports to the U.S. [3]