Investment Rating - The report maintains an "Accumulate-A" rating for the company [1] Core Views - The company is actively optimizing its product structure to improve profitability and is advancing the industrialization of high-end precision screw rods [1] - The company experienced a revenue growth of 5.10% in 2024, but its net profit declined by 33.88% due to losses from overseas operations [5][6] - The company aims to control overseas investment risks and gradually improve profitability by reallocating resources towards the European market [5] Financial Performance Summary - In 2024, the company achieved a revenue of 3.265 billion yuan, a year-on-year increase of 5.10%, while the net profit was 91.37 million yuan, a decrease of 33.88% [4] - For Q1 2025, the company reported a revenue of 889 million yuan, a year-on-year increase of 15.06%, with a net profit of 37.84 million yuan, a slight increase of 0.05% [4] - The company's gross margin for 2024 was 16.52%, down 1.02% year-on-year, while the net margin was 2.79%, down 1.84% year-on-year [6] Business Segment Analysis - The bearing and accessory sector accounted for the largest revenue share at 54.91%, followed by thermal management system components at 28.87% and automotive parts at 14.44% [5] - The company is focusing on high-precision, long-life bearings and accelerating the industrialization of high-end precision screw rods, which are expected to become new growth drivers [6][8] Future Projections - Revenue projections for 2025-2027 are 3.616 billion, 4.173 billion, and 4.872 billion yuan, representing year-on-year growth rates of 10.8%, 15.4%, and 16.7% respectively [9] - Expected net profits for the same period are 160 million, 207 million, and 279 million yuan, with growth rates of 74.8%, 29.5%, and 34.7% respectively [9]

Investment Rating - The report maintains an "Accumulate-A" rating for the company [1] Core Views - The company achieved a revenue of 3.265 billion yuan in 2024, representing a year-on-year growth of 5.10%. However, the net profit attributable to shareholders decreased by 33.88% to 91.37 million yuan [4][5] - The first quarter of 2025 showed a revenue increase of 15.06% year-on-year, reaching 889 million yuan, with a slight net profit increase of 0.05% to 37.84 million yuan [4][5] - The decline in profit is attributed to losses from overseas operations, particularly from subsidiaries in Mexico and Poland. A strategic shift towards the European market is expected to mitigate risks and improve profitability [5][6] Summary by Sections Financial Performance - In 2024, the company's gross margin was 16.52%, down 1.02% year-on-year, and the net margin was 2.79%, down 1.84% year-on-year. The first quarter of 2025 showed a recovery with a gross margin of 16.24% and a net margin of 4.36% [6] - The company’s operating expenses increased due to the consolidation of WJB Holdings, but future business integration is expected to enhance marketing effectiveness and sales scale [6] Business Segments - The bearing and components sector accounted for the largest revenue share at 54.91%, followed by thermal management system components at 28.87% and automotive parts at 14.44% [5] - The company is focusing on high-precision screw rod industrialization and has made technological breakthroughs in several key areas, including high-end precision screw rods and automotive safety airbag components [6][8] Future Projections - Revenue projections for 2025-2027 are 3.616 billion yuan, 4.173 billion yuan, and 4.872 billion yuan, with year-on-year growth rates of 10.8%, 15.4%, and 16.7% respectively. Net profit is expected to grow significantly, reaching 160 million yuan in 2025, a 74.8% increase [9][10]