Investment Rating - The report initiates coverage with a "Buy-A" rating for the company [4][6]. Core Views - The company is a leading player in the automotive wiring harness industry, having established strong relationships with high-quality clients, which positions it for significant growth [2][3]. - The automotive wiring harness market is projected to reach approximately 110 billion yuan by 2025, driven by the electrification and intelligentization trends in the automotive sector [2][36]. - The company has a competitive edge due to its strong response capabilities, automated production, and comprehensive client coverage, which includes partnerships with both traditional and new energy vehicle manufacturers [3][20]. Summary by Sections 1. Company Overview - The company has been deeply involved in the automotive wiring harness industry for 36 years, transitioning from engineering machinery to passenger vehicles and expanding its client base to include major players like Tesla and Li Auto [2][13]. - The company has developed a full range of wiring harness products, including high and low voltage harnesses, to meet the growing demand for electric vehicles [13][14]. 2. Market Dynamics - The shift towards electric vehicles is increasing the demand for high-voltage wiring harnesses, with the value per vehicle rising by approximately 1,500 to 2,000 yuan [36][44]. - The market for automotive wiring harnesses is expected to grow steadily, with a projected compound annual growth rate (CAGR) of 10% over the next three years [44][45]. 3. Competitive Position - The company is positioned to increase its market share, which is expected to rise from 8.1% in 2024, as it capitalizes on the growth of domestic and new energy vehicle manufacturers [46][47]. - The competitive landscape is shifting, with foreign manufacturers' market share declining and domestic players like the company gaining ground due to the rise of new energy vehicles [46][48]. 4. Financial Projections - The company is expected to achieve net profits of 7.9 billion yuan, 10.6 billion yuan, and 12.7 billion yuan for the years 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 17%, 35%, and 20% [4][5]. - The projected price-to-earnings (PE) ratios for 2025, 2026, and 2027 are 18.3, 13.5, and 11.3, respectively, indicating a favorable valuation [4][5].