Summary of Wuxi Zhenhua Conference Call Company Overview - Wuxi Zhenhua has entered the selective electroplating sector through the acquisition of Wuxi Kaixiang, focusing on providing electroplating services for core engine components. The revenue from this business is projected to reach 180 million yuan in 2024, with a gross margin of 80% [2][6][14]. Core Business Insights - The company has diversified its customer base, including major clients such as SAIC Motor, Tesla, Li Auto, and Xiaomi Auto. Xiaomi Auto is experiencing rapid growth and is expected to become a significant growth driver for Wuxi Zhenhua [2][4]. - The company has established nine production bases close to its clients in regions like North China, the Yangtze River Delta, and Central China [2][5]. Financial Performance - Wuxi Zhenhua's net profit margin has significantly improved from 4.6% in 2022 to nearly 15% in 2024, aided by the integration of the selective electroplating business and cost reduction measures. The decline in steel prices has also contributed positively to the company's overall profitability [2][6][7]. - The selective electroplating business is expected to generate revenues of 150 million yuan in 2023 and increase to 180 million yuan in 2024, maintaining a gross margin of approximately 80% [6][14]. Customer and Market Dynamics - The company has a strong relationship with SAIC Motor, which has historically been a key partner. The sales of SAIC Motor's passenger vehicles have shown an 11% year-on-year increase in the first seven months of 2025, which is expected to benefit Wuxi Zhenhua's assembly business [4][11]. - Xiaomi Auto's second factory is anticipated to commence production in August 2025, which, along with the overall increase in the automotive sector, is expected to significantly boost Wuxi Zhenhua's revenue [2][8][9]. Growth Potential - The company is projected to achieve a profit of approximately 550 million yuan in 2025, reflecting a year-on-year growth of over 35%. The valuation is currently around 15-16 times earnings, indicating potential for further expansion given the accelerating performance across multiple business segments [4][15]. - The circuit business of Wuxi Zhenhua is also performing strongly, with net profit margins around 60% in 2023 and 2024. The focus on power semiconductors, including IGBT and silicon carbide, is expected to drive future growth [4][14]. Risks and Challenges - The revenue and gross margin of the assembly business for SAIC Motor are projected to decline in 2024, primarily due to high manufacturing costs and low capacity utilization. However, recovery in overall sales is expected to enhance profitability in 2025 [11]. Conclusion - Wuxi Zhenhua is positioned for significant growth driven by its strategic acquisitions, diversified customer base, and strong financial performance. The company’s focus on selective electroplating and power semiconductors presents promising opportunities for future expansion [2][15].

点击注册小程序 查看完整报告 特别申明： 本订阅号中所涉及的证券研究信息由光大证券研究所编写，仅面向光大证券专业投资者客户，用作新媒体形势下研究 信息和研究观点的沟通交流。非光大证券专业投资者客户，请勿订阅、接收或使用本订阅号中的任何信息。本订阅号 难以设置访问权限，若给您造成不便，敬请谅解。光大证券研究所不会因关注、收到或阅读本订阅号推送内容而视相 关人员为光大证券的客户。 2024年公司总营业收入同比+9.2%至25.3亿元（vs. 我们上一次预测27.0亿元），归母净利润同比+36.3%至 3.8亿元（vs. 我们上一次预测全年3.9亿元）；其中，4Q24营业收入同比+14.2%/环比+30.6%至8.0亿元， 归母净利润同比+15.2%/环比+38.4%至1.3亿元。我们判断，4Q24公司业绩同环比双增主要受益于小米配套 车型销量增长、以及原材料价格显著下降。 规模效应带动冲压毛利率增长，电镀业务持续增厚利润 利润端：2024年公司毛利率同比+0.8pcts至25.9%，其中4Q24毛利率同比+1.9pcts/环比+2.3pcts至28.0%。 费用端：2024年公司销管研三费费用率同比-1.0pct ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its performance driven by its stamping and electroplating businesses [3]. Core Views - The company is expected to achieve a total revenue of 2.53 billion yuan in 2024, representing a year-on-year increase of 9.2%, and a net profit attributable to shareholders of 378 million yuan, reflecting a growth of 36.3% [1]. - The growth in revenue and profit in Q4 2024 is attributed to increased sales of Xiaomi's supporting models and a significant decrease in raw material prices [1]. - The company's gross margin is projected to improve due to scale effects from its stamping business and the continued profitability of its electroplating segment [1][2]. Summary by Sections Financial Performance - In Q4 2024, the company's revenue reached 800 million yuan, up 14.2% year-on-year and 30.6% quarter-on-quarter, with a net profit of 130 million yuan, marking a year-on-year increase of 15.2% and a quarter-on-quarter increase of 38.4% [1]. - The gross margin for 2024 is expected to be 25.9%, an increase of 0.8 percentage points year-on-year, with Q4 2024 gross margin at 28.0%, up 1.9 percentage points year-on-year and 2.3 percentage points quarter-on-quarter [1]. Business Segments - The stamping business is projected to grow by 16.6% in revenue with a gross margin increase of 8.25 percentage points to 16.8% in 2024 [1]. - The electroplating business is expected to see a revenue increase of 17.6% and a gross margin of 80.5%, up 1.1 percentage points year-on-year [1]. - The company is expanding its production capacity and customer base, with significant investments planned for new projects in automotive parts [2]. Future Projections - The report forecasts net profits of 460 million yuan for 2025, 521 million yuan for 2026, and 594 million yuan for 2027, indicating a strong growth trajectory [3][4]. - The target price for the company's stock has been raised to 36.20 yuan, based on a price-to-earnings ratio of 20 times the estimated earnings for 2025 [3].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance driven by its stamping and electroplating businesses [3]. Core Views - The company is expected to achieve a total revenue of 2.53 billion yuan in 2024, representing a year-on-year increase of 9.2%, and a net profit attributable to shareholders of 378 million yuan, reflecting a growth of 36.3% [1]. - The growth in revenue and profit in Q4 2024 is attributed to increased sales of Xiaomi's supporting models and a significant decrease in raw material prices [1]. - The company's gross margin is projected to improve due to the expansion of its stamping business and the growth of its electroplating business, with a gross margin of 25.9% expected for 2024 [1][2]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 800 million yuan, up 14.2% year-on-year and 30.6% quarter-on-quarter, with a net profit of 130 million yuan, increasing by 15.2% year-on-year and 38.4% quarter-on-quarter [1]. - The gross margin for 2024 is expected to be 25.9%, with Q4 2024 gross margin reaching 28.0% [1][10]. Business Segments - The stamping business revenue is projected to grow by 16.6% year-on-year, while the electroplating business is expected to see a revenue increase of 17.6% [1]. - The company has established a multi-location operational layout to enhance customer stickiness and is investing in capacity upgrades for its stamping business [2]. Future Projections - The report forecasts net profits of 460 million yuan for 2025 and 521 million yuan for 2026, with an additional projection of 590 million yuan for 2027 [3][4]. - The company is expected to benefit from the recovery in sales from SAIC and the launch of more new energy projects, which will enhance profitability [1][2].