Core Viewpoint - The company is positioned for growth through a dual strategy of traditional business intelligence and the scaling of new energy business, targeting a significant increase in revenue from electric vehicle components and precision electroplating by 2025 and 2030 [2][6]. Group 1: Automotive Stamping Business - The company has been deeply involved in the automotive stamping business for over 30 years, with a focus on expanding its customer base to include major players like Tesla, Li Auto, and Xiaomi, alongside its long-term partnership with SAIC Group [3][11]. - The domestic passenger car stamping market is projected to reach approximately 270 billion yuan by 2025, with a compound annual growth rate (CAGR) of 2.6% from 2025 to 2030 [3][40]. - The competitive landscape of the stamping industry is fragmented, with the top five companies holding a market share of about 9.5%, indicating potential for increased concentration as major manufacturers seek suppliers with strong responsiveness and cost control capabilities [3][45]. Group 2: Precision Electroplating Business - The acquisition of Wuxi Kaixiang in 2022 allowed the company to enter the precision electroplating sector, which has become a significant growth driver, contributing 7% of total revenue and 33% of net profit in 2023 [5][22]. - The company has established itself as a key supplier in the precision electroplating market, achieving over 50% market share domestically and a net profit margin of approximately 60% [5][15]. - The company is actively expanding its technology and customer base in the power semiconductor sector, having secured a partnership with Infineon, a leading player in the industry [5][15]. Group 3: Financial Performance and Projections - The company is expected to achieve revenues of 35.2 billion yuan, 44.5 billion yuan, and 52.8 billion yuan from 2025 to 2027, with net profits projected at 5.0 billion yuan, 6.5 billion yuan, and 8.0 billion yuan respectively [6][8]. - The earnings per share (EPS) are forecasted to increase from 2.01 yuan in 2025 to 3.18 yuan in 2027, reflecting a strong growth trajectory [6][8]. - The company maintains a competitive edge with a projected price-to-earnings (PE) ratio of 16, 12, and 10 for the years 2025 to 2027, indicating favorable valuation metrics [6][8]. Group 4: Management and Corporate Structure - The company has a stable ownership structure, with the controlling shareholders holding 62.49% of the shares, which supports long-term strategic execution [17][21]. - The management team is characterized by a blend of family leadership and professional expertise, enhancing operational stability and strategic direction [21][22]. - The implementation of stock incentive plans aims to align the interests of the core team with the company's growth objectives, fostering a motivated workforce [18][21].

Investment Rating - The report maintains a "Recommended" rating for the company, with a closing price of 31.65 CNY as of July 10, 2025 [6]. Core Insights - The company has entered a pivotal point in its stamping customer structure, with the electroplating business catalyzing new growth. The goal is for the new energy business to account for 25% and 60% of total revenue by 2025 and 2030, respectively [1][3]. - The company has a strong foothold in the automotive stamping parts sector, expanding its customer base and national production capacity, which is expected to drive growth [2][3]. - The acquisition of the electroplating business has created a second growth curve, with the company becoming a key supplier in the precision electroplating sector, particularly in the power semiconductor field [3][19]. Summary by Sections 1. Introduction - The report focuses on the company, which has over 30 years of experience in the automotive parts industry, forming four main business segments: stamping parts, assembly parts, precision electroplating, and molds. The company has established solid partnerships with major automotive manufacturers [10][12]. 2. Stamping Parts and Electroplating Business - The company is a leading supplier of automotive stamping parts, leveraging its long-standing relationship with SAIC Group and expanding into new energy vehicle manufacturers like Tesla and Li Auto [20][32]. - The precision electroplating business, acquired in 2022, has significantly contributed to revenue and profit, with a projected contribution of 1.8 billion CNY in revenue and 1.1 billion CNY in net profit for 2024 [29][45]. 3. Industry Overview - The automotive stamping parts market is projected to reach approximately 270 billion CNY by 2025, with a CAGR of 2.6% from 2025 to 2030. The industry is characterized by a fragmented competitive landscape [47][63]. - The report highlights the increasing demand for lightweight components in the automotive sector, driven by the rise of new energy vehicles, which is expected to enhance the market for stamping parts [46][63]. 4. Financial Forecast and Investment Recommendations - Revenue forecasts for 2025, 2026, and 2027 are estimated at 35.2 billion CNY, 44.5 billion CNY, and 52.8 billion CNY, respectively, with net profits projected at 5.0 billion CNY, 6.5 billion CNY, and 8.0 billion CNY [3][5]. - The report emphasizes the company's strong management capabilities and cost control, which are expected to lead to sustained improvements in net profit margins [2][39].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - The target price of Xizhen Convertible Bond on the first day of listing is estimated to be between 130 - 134 yuan, and investors are advised to actively subscribe. The expected first - day new - bond lottery winning rate is around 0.0019% - 0.0031%. The project funded by the raised capital is in line with industry trends, which can enhance the company's market competitiveness and optimize its capital structure [3][4]. Summary by Directory 1. Tin Zhen Convertible Bond New - Issue Analysis and Investment Recommendations 1.1 Convertible Bond Basic Terms Analysis - The issuance methods of Xizhen Convertible Bond are priority placement and online issuance. Its bond and issuer ratings are AA-. The issuance scale is 520 million yuan, the initial conversion price is 31.98 yuan, the bond parity is 100.66 yuan, and the pure bond value is 95.25 yuan. The game terms (lower - revision, redemption, and put - back) are normal. Overall, the bond has average issuance scale and liquidity, decent rating, and good bond - floor protection. It is easy for institutions to include it in their portfolios, and there is no objection to primary - market participation [2][15]. 1.2 New - Bond Initial Listing Price Analysis - The company's main businesses include stamping parts, sub - assembly processing, selective precision electroplating processing, and mold businesses. The raised funds will be mainly used for the "Langfang Zhenhua Quanjingshen Auto Parts Project" and to supplement working capital. Considering the market environment and parity level, the conversion premium rate on the first day of listing is expected to be in the range of [29%, 33%], corresponding to a target price of around 130 - 134 yuan [3][18][19]. 1.3 Convertible Bond New - Issue Lottery Winning Rate Analysis - The expected first - day new - bond lottery winning rate is around 0.0019% - 0.0031%. Assuming an old - shareholder placement ratio of 50% - 70%, the scale available for the market is 157 million - 261 million yuan. Assuming 8.36 million online valid subscription accounts, the lottery winning rate is estimated within the above range [4][20]. 2. Underlying Stock Fundamental Analysis 2.1 Company's Main Business and Industry Up - and Downstream Situations - The company's main businesses are stamping parts, sub - assembly processing, selective precision electroplating processing, and mold businesses. The upstream industries mainly include production equipment manufacturers and raw material suppliers such as steel and aluminum. The downstream industry is the automotive industry. China's automotive industry is in the popularization stage with large growth potential, which will drive the development of the auto - parts industry [21][22]. 2.2 Company's Operating Conditions - The company's recent operating income has been on the rise. From 2022 to Q1 2025, the operating income was 1.881 billion yuan, 2.317 billion yuan, 2.531 billion yuan, and 600 million yuan respectively, with year - on - year growth rates of 18.9%, 23.19%, 9.23%, and 22.48%. The comprehensive gross margin has been increasing year by year. The net profit attributable to the parent company has also been rising annually. The company's profitability has been on an upward trend [25][28][37]. 2.3 Company's Equity Structure and Major Subsidiaries - As of the end of 2024, the company's equity structure was relatively concentrated. The top two shareholders, Wuxi Junrun and Qian Ben, held 27.53% and 22.37% of the shares respectively, with a combined shareholding ratio of 49.9%. The top ten shareholders held a combined 72.63% of the shares. The company has 9 wholly - owned subsidiaries [41]. 2.4 Company's Business Characteristics and Advantages - The company has advantages in technology R & D, production equipment, customer resources, industry matching, and management. It has 148 patents, advanced production equipment, stable cooperation with well - known automakers, significant industry - matching advantages, and an effective management system [44][45][48]. 2.5 Allocation of the Raised Funds - The company plans to issue convertible bonds to raise up to 520 million yuan. 420 million yuan will be invested in the "Langfang Zhenhua Quanjingshen Auto Parts Project", and 100 million yuan will be used to supplement working capital. The project, with a total investment of 648 million yuan, will increase the company's overall production capacity. After reaching full production, it will have an annual production capacity of 500,000 sets of auto parts [49].