Core Viewpoint - The company is experiencing growth in its battery box and smart exterior components businesses, with significant new orders and strategic partnerships that enhance its market position and product offerings [1][2]. Group 1: Battery Box Business - The company has secured its first battery box assembly orders from Chang'an and Anhui Volkswagen in 2024 [1] - The market share of the company's battery box business is steadily increasing among key clients, including successful penetration into the European Hyundai-Kia market [1] - The company has also made breakthroughs in the North American Ford and Japanese Toyota battery box businesses [1] Group 2: Smart Exterior Components - The company is focusing on the development of smart front and rear face systems and smart door systems, achieving a comprehensive upgrade in exterior smart technology [2] - In 2024, the company aims to expand its offerings in front and rear assemblies, door assemblies, and composite structural components [2] - The company has developed an integrated smart front face solution with features like lighting, heating, wave transmission, and automatic cleaning, applicable to L4 level autonomous driving scenarios [2] - The market penetration of several products is continuously improving, with successful projects including a fully enclosed smart front face panel for a European brand and mass production of a laser radar cover for a well-known tech car manufacturer [2] Group 3: Strategic Partnerships and Innovations - The company has signed a strategic cooperation agreement with Zhiyuan Robotics, focusing on smart exterior and electronic skin technology, humanoid robot wireless charging, and joint assembly development [2] - The collaboration aims to enhance touch interaction, temperature sensing, color-changing functions, and environmental perception in humanoid robots [2] - The company plans to leverage its advanced manufacturing experience in automotive parts to promote the secondary development and application of humanoid robots in automotive manufacturing scenarios [2] Group 4: Profit Forecast - The company forecasts net profits attributable to shareholders of 2.774 billion yuan, 3.292 billion yuan, and 3.809 billion yuan for 2025-2027, with corresponding EPS of 2.36 yuan, 2.80 yuan, and 3.24 yuan [3] - The company has initiated coverage with a "buy" rating [3]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][7]. Core Insights - The company is experiencing stable growth in its core business, particularly in the battery box segment, having secured significant orders from major clients such as Changan and Anhui Volkswagen for 2024. The company has also successfully expanded its market share in Europe, North America, and Japan [1]. - The company is actively developing smart exterior components, focusing on integrated solutions for intelligent front and rear systems and smart door systems, which are essential for advanced autonomous driving applications [2]. - A strategic partnership has been established with Zhiyuan Robotics to collaborate on various technologies, including smart exteriors, electronic skin, and humanoid robot components, enhancing the company's innovation capabilities in robotics [3]. Financial Summary - The company’s revenue is projected to grow from 23.15 billion yuan in 2024 to 33.24 billion yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 12.78% [5]. - The net profit attributable to the parent company is expected to increase from 2.32 billion yuan in 2024 to 3.81 billion yuan in 2027, with a CAGR of about 19.61% [5]. - Earnings per share (EPS) are forecasted to rise from 2.02 yuan in 2024 to 3.24 yuan in 2027 [5]. Market Performance - The company has shown strong absolute returns over the past year, with a 12-month return of 146% compared to the Hang Seng Index [9]. - The stock has a current market capitalization of approximately 41.32 billion HKD [7].