Investment Rating - The report maintains a "Buy" rating for the company [6][3]. Core Insights - The company is undergoing a significant transformation from a traditional automotive parts manufacturer to a dual-driven model focusing on "automotive components + new energy storage" [20][23]. - The energy storage business has shown explosive growth, with a revenue increase of 411% in 2024 compared to 2023, marking a substantial strategic breakthrough [27][30]. - The company has established a solid position in the automotive transmission market, serving major domestic automakers and expanding its product lines to include non-road transmission systems and energy storage solutions [20][23]. Summary by Sections 1. Company Overview - Founded on October 22, 2003, and listed on June 18, 2010, the company has evolved from a regional supplier to a national core component manufacturer [20]. - The company has a comprehensive product system covering manual and automatic transmissions for passenger and commercial vehicles, with manufacturing bases in multiple locations [20][23]. 2. Business Transformation - The company is shifting towards a dual-driven model, integrating energy storage as a key growth area alongside traditional automotive components [20][23]. - The energy storage business has been incorporated into the main business scope, with significant investments in new energy storage power stations across various provinces [20][23]. 3. Financial Performance - The company expects revenues of 60.1 billion, 71.2 billion, and 89.6 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 4.0 billion, 4.9 billion, and 6.0 billion yuan [3][4]. - The company's revenue has shown a compound annual growth rate (CAGR) of 18.7% over the past three years, driven primarily by the energy storage business [27][30]. 4. Market Position - The company holds a leading market share in commercial vehicle transmissions, providing products to major manufacturers such as Foton and China National Heavy Duty Truck Group [34][41]. - The passenger vehicle transmission segment has also seen growth, with the company becoming a core supplier for leading domestic brands like Geely and BYD [50][61]. 5. Energy Storage Business - The energy storage sector is positioned for significant growth, with the company actively participating in the investment, design, and operation of new energy storage projects [20][23]. - The company has obtained qualifications for power trading and carbon asset management, expanding its reach into high-value areas of the energy market [20][23].

Core Viewpoint - Wanliyang's stock price has experienced fluctuations, with a year-to-date increase of 49.02%, but a recent decline of 6.10% over the past five trading days and 12.85% over the past twenty days [1] Company Overview - Zhejiang Wanliyang Co., Ltd. is located at 3999 Bin Hong West Road, Jinhua City, Zhejiang Province, established on October 22, 2003, and listed on June 18, 2010 [1] - The company's main business involves the research, production, and sales of automotive transmissions and other automotive components, with revenue composition as follows: automotive transmissions and parts 89.64%, others 5.33%, energy storage and electricity trading 4.53%, and financing leasing 0.50% [1] Financial Performance - For the period from January to September 2025, Wanliyang achieved operating revenue of 4.201 billion yuan, a year-on-year decrease of 2.14%, while net profit attributable to shareholders increased by 32.58% to 341 million yuan [2] - Cumulative cash dividends since the A-share listing amount to 2.079 billion yuan, with 525 million yuan distributed over the past three years [3] Shareholder Information - As of September 30, 2025, the number of shareholders reached 43,300, an increase of 10.14% from the previous period, with an average of 30,284 circulating shares per person, a decrease of 9.21% [2] - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited ranks as the eighth largest, holding 21.4289 million shares, an increase of 2.4749 million shares from the previous period [3] Market Activity - As of November 12, Wanliyang's stock price was 9.09 yuan per share, with a trading volume of 132 million yuan and a turnover rate of 1.10%, resulting in a total market capitalization of 11.932 billion yuan [1] - The net inflow of main funds was 672,700 yuan, with large orders accounting for 24.98% of purchases and 23.84% of sales [1]

Core Viewpoint - Wanliyang's stock experienced a decline of 1.07% on November 11, with a trading volume of 170 million yuan, indicating a potential shift in investor sentiment and market dynamics [1]. Financing Summary - On November 11, Wanliyang had a financing buy-in amount of 24.08 million yuan and a financing repayment of 15.37 million yuan, resulting in a net financing purchase of 8.71 million yuan [1]. - As of November 11, the total financing and securities lending balance for Wanliyang was 466 million yuan, with the financing balance accounting for 3.82% of the circulating market value, which is above the 80th percentile of the past year, indicating a high level of financing activity [1]. - In terms of securities lending, Wanliyang repaid 49,300 shares and sold 70,300 shares on November 11, with a selling amount of 652,400 yuan, while the remaining securities lending volume was 151,100 shares, with a balance of 1.4 million yuan, which is below the 40th percentile of the past year, suggesting a lower level of short selling activity [1]. Business Performance Summary - As of September 30, Wanliyang had 43,300 shareholders, an increase of 10.14% from the previous period, while the average circulating shares per person decreased by 9.21% to 30,284 shares [2]. - For the period from January to September 2025, Wanliyang reported operating revenue of 4.201 billion yuan, a year-on-year decrease of 2.14%, while the net profit attributable to shareholders increased by 32.58% to 341 million yuan [2]. - Since its A-share listing, Wanliyang has distributed a total of 2.079 billion yuan in dividends, with 525 million yuan distributed over the past three years [2]. - As of September 30, 2025, Hong Kong Central Clearing Limited was the eighth largest circulating shareholder, holding 21.4289 million shares, an increase of 2.4749 million shares from the previous period [2].