Core Insights - The company reported a 19% year-on-year growth in main business revenue for Q4 2024, with total revenue for the year reaching 8.781 billion yuan, an 8.76% increase compared to the previous year [1] - The net profit attributable to shareholders for the year was 1.024 billion yuan, reflecting a 25.42% increase [1] - The company is experiencing significant growth in its electric vehicle gear segment, driven by increased orders for coaxial reducers and global platform project deliveries [2] Financial Performance - For the full year 2024, the main business revenue was 8.08 billion yuan, up 18.46% year-on-year, while the net profit was 1.024 billion yuan, up 25.42% [1] - In Q4 2024, total revenue was 2.039 billion yuan, a decrease of 7.4% year-on-year, but main business revenue grew approximately 19.4% [1] - The gross margin for 2024 reached 25%, an increase of 2.8 percentage points year-on-year, with nearly all business segments showing improved margins [3] Business Segments - The passenger car gear revenue accounted for 61% of total revenue, an increase of 8 percentage points year-on-year, with electric vehicle gear revenue growing by 51% to 3.37 billion yuan [2] - The smart actuator business saw a 70% increase in revenue, reaching 640 million yuan, driven by partnerships with leading domestic robotic vacuum manufacturers [2] - The company plans to enhance its presence in the European market through local production in Hungary, responding to the growing demand for gear outsourcing from major automotive manufacturers [2] Profitability and Valuation - The company anticipates further gross margin improvements in the passenger car and smart actuator segments, supported by product upgrades and cost efficiencies [3] - Profit forecasts for 2025, 2026, and 2027 have been slightly adjusted, with expected net profits of 1.25 billion, 1.48 billion, and 1.71 billion yuan respectively [3] - The target price has been raised to 38.5 yuan, reflecting a 29% increase, with a maintained rating of "outperform the market" [3]

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of Rmb38.50, representing a 29% upside from the current price of Rmb32.23 [2][8]. Core Insights - The company achieved a full-year revenue of Rmb8.781 billion in 2024, reflecting a year-on-year growth of 8.76%. The core business revenue reached Rmb8.08 billion, up 18.46% year-on-year, while net profit attributable to shareholders grew by 25.42% to Rmb1.024 billion [3][13]. - The passenger vehicle gear segment accounted for 61% of total revenue in 2024, with new energy vehicle gear revenue reaching Rmb3.37 billion, a 51% increase year-on-year, contributing to 38% of total revenue [4][14]. - The smart actuator business saw a significant revenue increase of 70% year-on-year, reaching Rmb642 million, becoming the second-largest growth driver after NEV gears [5][15]. - The overall gross margin for the company improved to 25.0%, marking an increase of 2.8 percentage points year-on-year, with all major business segments contributing to this improvement [16]. Financial Projections - The company forecasts net profits of Rmb1.25 billion, Rmb1.48 billion, and Rmb1.71 billion for 2025, 2026, and 2027 respectively, with a P/E ratio of 22x applied to the 2026 earnings estimate [8][17]. - Revenue projections for the upcoming years are as follows: Rmb9.745 billion in 2025, Rmb10.943 billion in 2026, and Rmb12.043 billion in 2027, with respective growth rates of 11%, 12%, and 10% [10][12].

Group 1 - The company approved the 2024 profit distribution plan during the board meeting held on April 23, 2025, which will be submitted to the annual general meeting for approval [2][24]. - The company reported a net profit attributable to shareholders of 1,023,911,091.96 yuan for 2024, with a parent company net profit of 619,716,635.22 yuan [3][4]. - The profit distribution plan includes a cash dividend of 2.26 yuan per 10 shares (tax included), with no bonus shares or capital reserve conversion [4][10]. Group 2 - The total cash dividend is expected to be approximately 189,205,790.89 yuan based on the adjusted total share capital of 837,193,765 shares after accounting for repurchased shares [5]. - The total amount for cash dividends and share repurchases for 2024 is projected to be 309,192,481.89 yuan, representing 30.20% of the net profit attributable to shareholders [5]. - The company has maintained a cash dividend amount exceeding 30% of the average net profit over the last three years, avoiding any risk warning situations [6]. Group 3 - The profit distribution plan is deemed reasonable, considering the company's industry characteristics, development stage, operational model, profitability, debt repayment ability, and future funding needs [7]. - The company has been focusing on the manufacturing of gear transmission products, with its main products including gears for passenger cars, commercial vehicles, engineering machinery, and electric tools [12][13]. - The company is transitioning from traditional gear products to high-precision gears and related components, enhancing its reputation in the international market [12]. Group 4 - The company plans to hold its 2024 annual general meeting on May 16, 2025, where the profit distribution plan and other proposals will be discussed [51][54]. - The meeting will combine on-site voting and online voting, allowing shareholders to participate remotely [53][60]. - The company has established a clear process for shareholder registration and voting, ensuring compliance with legal and regulatory requirements [57][68].