Core Viewpoint - The annual performance briefing held by the Beijing Stock Exchange focused on the automotive parts industry, highlighting the financial performance and future strategies of five listed companies in the sector. Group 1: Main Business Focus - Taide Co., Ltd. reported a revenue of 340 million yuan in 2024, a year-on-year increase of 23.13%, and a net profit of 24.95 million yuan, up 216.53% [2] - Jiezong Technology achieved a revenue of 286 million yuan in 2024, reflecting a 23.63% growth, with a net profit of 62.51 million yuan, increasing by 56.86% [2] - Huayang Transmission's revenue reached 512 million yuan in 2024, marking a 57.82% increase, with 257 million yuan coming from passenger vehicle parts sales [3] - Jianbang Technology's factory in Thailand is expected to be operational in the second quarter, with an annual production capacity of 300,000 to 500,000 units, translating to an estimated annual revenue of 100 million to 150 million yuan [3] Group 2: Business Expansion - Companies are actively expanding their business boundaries to seek new growth points, particularly in automotive electronics and robotics [4] - Taide Co., Ltd. plans to enhance market development in engineering machinery, robotics, and high-end bearings by 2025 [4] - Jiezong Technology is looking to expand into robotics, low-altitude economy, and military industries for high-quality development [4] - Dezhong Automotive is innovating its business model to include used cars and safety inspections, aiming to enhance its automotive sales and after-sales service [5] Group 3: Innovation and R&D - Continuous R&D innovation is crucial for maintaining competitiveness in the automotive parts industry [6] - Taide Co., Ltd. is focusing on developing flexible bearing technology, which requires high material purity and precision manufacturing [6] - Jianbang Technology's R&D investment for 2024 is 23.67 million yuan, a 19.49% increase, with a focus on automotive electronics [6] - Jiezong Technology's R&D expenses for 2024 are 13.12 million yuan, up 16.78%, emphasizing the development of new energy vehicle components and intelligent production technology [7]

Core Viewpoint - The company's growth in 2024 is primarily driven by export orders, with a strong performance in core components and a deepening global capacity layout, leading to an "overweight" rating [1] Financial Performance - The company expects 2024 revenue of 9.765 billion yuan, a year-on-year increase of 11.06%, and a net profit attributable to shareholders of 1.23 billion yuan, up 10.17% year-on-year [2] - In Q4 2024, revenue reached 2.519 billion yuan, a year-on-year increase of 8.5%, with a net profit of 352 million yuan, up 22% [2] - For Q1 2025, the company reported revenue of 2.387 billion yuan, a year-on-year increase of 3.23%, but net profit decreased by 16.19% to 228 million yuan [2] Business Segments - The clean health appliances and gardening tools segment generated revenue of 5.669 billion yuan in 2024, a year-on-year increase of 10.33%, while the motor, new energy vehicle precision components, and other parts contributed 3.874 billion yuan, up 11.74% year-on-year [2] - The automotive parts business exceeded 2 billion yuan in revenue, achieving record sales and profit growth [3] - The motor business also saw double-digit growth in sales and profits, with 17 new projects secured in the automotive motor sector [3] Regional Performance - Domestic sales were 2.705 billion yuan, down 2.71% year-on-year, while exports reached 6.839 billion yuan, up 17.4% year-on-year, indicating that exports were the main growth driver [3] Cost and Margin Analysis - In Q1 2025, the company's gross margin was 23.41%, down 2.52 percentage points year-on-year, and the net margin was 9.57%, down 2.21 percentage points year-on-year [3] - The increase in financial expense ratio is attributed to a decrease in exchange gains [3] Global Capacity Expansion - The company's production base in Vietnam is expected to be completed in Q2 2025, with a capacity of over 4 million small appliances and gardening tools, and 1.8 million motors [3] - The production base in Thailand is projected to be completed in Q3 2025, with an expected annual output value of 1.4 billion yuan [3] - The company aims to deepen its overseas layout, with global capacity expected to be further released as production bases come online [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is focusing on building a second growth curve through its components business while benefiting from foreign exchange gains that enhance profits [5] - In Q4 2024, the company achieved operating revenue of 9.76 billion yuan (up 11.1% year-on-year) and a net profit attributable to shareholders of 1.23 billion yuan (up 10.2% year-on-year) [5] - The company is strategically reducing its proprietary brand business and continuously optimizing its business structure, leading to a downward adjustment in profit forecasts for 2025-2026 [5] - The company is experiencing robust growth in its OEM and components businesses, while the proprietary brand strategy is being strategically reduced [5] Financial Performance Summary - In 2024, the company reported operating revenue of 9.76 billion yuan, with a year-on-year growth of 11.1%, and a net profit of 1.23 billion yuan, reflecting a 10.2% increase [8] - The gross margin for 2024 was 24.2%, a decrease of 1.5 percentage points compared to the previous year [6] - The company’s overseas market revenue reached 6.84 billion yuan in 2024, up 17.4%, while domestic market revenue was 2.7 billion yuan, down 2.7% [5] - The company’s operating cash flow for 2024 was 1.61 billion yuan, an increase of 91.7% [6] Business Segment Insights - The components business is gradually ramping up, contributing to the second growth curve, with a focus on high-margin ODM/OBM business models [5] - In 2024, revenue from clean and healthy home appliances and gardening tools was 5.67 billion yuan (up 10.3%), while revenue from motors and precision components for new energy vehicles reached 3.87 billion yuan (up 11.7%) [5] - The automotive components segment achieved over 2 billion yuan in revenue, marking a new high with both revenue and profit growth [5] Future Projections - The company’s net profit forecasts for 2025-2027 are projected at 1.32 billion yuan, 1.42 billion yuan, and 1.55 billion yuan respectively [5] - The expected EPS for 2025-2027 is 2.30 yuan, 2.48 yuan, and 2.71 yuan, with corresponding P/E ratios of 9.5, 8.8, and 8.0 [8]