Core Viewpoint - The company reported strong financial performance in 2024, with revenue and net profit growth aligning with market expectations, driven primarily by the electric vehicle sector [1][2]. Financial Performance - In 2024, the company achieved revenue of 1.13 billion, a year-on-year increase of 42%, and a net profit of 230 million, up 34% year-on-year, with a gross margin of 35%, down 2.5 percentage points [1]. - For Q4 2024, revenue was 330 million, reflecting a quarter-on-quarter increase of 50% and a year-on-year increase of 5%, while net profit was 60 million, with a quarter-on-quarter increase of 18% but a year-on-year decrease of 3% [1]. - In Q1 2025, revenue reached 270 million, a quarter-on-quarter increase of 24% but a year-on-year decrease of 18%, with net profit also at 60 million, showing a quarter-on-quarter increase of 27% and a year-on-year decrease of 7% [1]. Business Segmentation - The electric vehicle segment generated 900 million in revenue for 2024, a 56% increase year-on-year, with a gross margin of 40%, contributing significantly to overall profitability [1]. - Non-electric vehicle business revenue was 240 million, a 5% increase year-on-year, with a lower gross margin of 13% [1]. - International revenue accounted for 51% of total revenue in 2024, with a gross margin of 43% [1]. Growth Prospects - The company anticipates continued revenue growth of over 30% due to increasing orders from major automotive clients like Stellantis and Toyota [1]. - New production facilities in Thailand and Mexico are under construction to support demand from European and North American customers [1]. Strategic Developments - The company acquired a 51% stake in KGG, which is expected to contribute profits of 8 million, 27 million, and 35 million in 2025, 2026, and 2027 respectively, leveraging KGG's leading micro-screw technology [2]. - The company expects significant order growth in the second half of 2025, with production capacity from the Thailand factory coming online in 2026 to meet overseas demand [2]. Cost Management - The company maintained effective cost control, with operating expenses of 110 million in 2024, a 13% increase year-on-year, and a decrease in expense ratio by 3 percentage points [2]. - Operating cash flow for 2024 was 210 million, a 5% decrease year-on-year, but Q1 2025 saw a significant increase of 277% quarter-on-quarter [2]. Profit Forecast - The company revised its net profit forecasts for 2025 and 2026 to 330 million and 470 million respectively, with a new estimate for 2027 at 640 million, reflecting growth rates of 42%, 45%, and 35% [3]. - The company maintains a target price of 65 yuan for 2026, applying a price-to-earnings ratio of 50x [4].