Investment Rating - The report initiates coverage with a "Buy" rating for the company [1][6]. Core Insights - The company, Songyuan Safety, is a leading player in the automotive passive safety sector in China, with a comprehensive product ecosystem that includes seat belts, intelligent steering systems, multi-module airbags, electronic control units, and high-reliability wiring harnesses [4][14]. - The company achieved a revenue of 1.834 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 39.98%, and a net profit of 263 million yuan, up 37.93% year-on-year [4][5]. - The global market for automotive passive safety is projected to grow from 164.5 billion yuan in 2024 to 184.5 billion yuan by 2028, with a domestic market expected to increase from 35.6 billion yuan to 43 billion yuan during the same period, reflecting a compound annual growth rate of 4.8% [4]. Summary by Sections 1. Leading Company in Passive Safety - Songyuan Safety has established itself as a leader in the automotive passive safety field in China, with a strong focus on R&D and a global strategic layout across key automotive regions [14][18]. - The company has seen steady revenue growth, with a compound annual growth rate of 38.31% from 2021 to 2024, and a revenue of 1.148 billion yuan in the first half of 2025, up 42.87% year-on-year [23][24]. 2. Positive Outlook for Seat Belt Industry - The automotive passive safety market is characterized by high entry barriers, with established relationships between major automakers and suppliers [36]. - The company’s seat belt production capacity is expected to reach 26 million sets in 2024, with a year-on-year increase of 20.69% [38]. 3. Growth from Airbags and Steering Wheels - The company has established a new growth curve through its airbag and steering wheel divisions, which have seen significant revenue contributions and profitability improvements [25][47]. - In the first half of 2025, the airbag and steering wheel segments generated revenues of 299 million yuan and 148 million yuan, respectively, marking year-on-year growth of 121% and 283% [50]. 4. Profit Forecast and Investment Recommendations - The report forecasts net profits for the company to be 394 million yuan, 515 million yuan, and 701 million yuan for 2025, 2026, and 2027, respectively, with corresponding year-on-year growth rates of 51.13%, 30.87%, and 36.17% [6][8].