Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has reported significant revenue growth driven by new businesses, with 2024 revenue reaching 1.971 billion yuan, a year-on-year increase of 53.94% [2][3] - The company is benefiting from the domestic automotive parts substitution trend, with substantial progress in customer expansion, product volume, technology research and development, and capacity layout [5][6] Summary by Sections Revenue Growth - In 2024, the company's revenue was 1.971 billion yuan, a substantial increase of 53.94% year-on-year, significantly outperforming the industry [2][3] - Revenue from the automotive seatbelt assembly, airbags, and steering wheel businesses was 1.264 billion, 475 million, and 131 million yuan, respectively, with year-on-year growth rates of 39.9%, 151.86%, and 71.45% [3] Profitability and Cost Control - The net profit attributable to the parent company for 2024 was 260 million yuan, up 31.65% year-on-year, with a gross margin of 28.71%, a decrease of 2.81 percentage points [4] - The company has effectively controlled expenses, with selling, administrative, and R&D expense ratios of 1.78%, 3.75%, and 4.97%, respectively, showing year-on-year decreases [4] R&D and Product Development - The company has increased R&D investment, with R&D expenses reaching 98 million yuan, a year-on-year increase of 46.27% [4] - New products such as airbags and steering wheels are experiencing rapid growth, becoming significant drivers of the company's expansion [5][6] Capacity Expansion - The company successfully issued 410 million yuan in convertible bonds to support the construction of projects aimed at producing 13.3 million sets of automotive safety systems and components annually [6] - The company is accelerating the construction of its projects in Chao Lake and Ningbo, which will enhance its market share in seatbelts, airbags, and steering wheel assemblies [6] Earnings Forecast - The company maintains its earnings forecasts for 2025 and 2026, with new projections for 2027, expecting revenues of 2.591 billion, 3.447 billion, and 4.516 billion yuan for 2025, 2026, and 2027, respectively [7] - The projected net profits for the same years are 447 million, 593 million, and 792 million yuan, with corresponding EPS of 1.98, 2.62, and 3.50 yuan [7]

Core Viewpoint - The company reported significant revenue growth and profitability in 2024, driven by strong performance across its core automotive safety components business [1][2][4]. Revenue Growth - In 2024, the company's revenue reached 1.971 billion yuan, a year-on-year increase of 53.94%, significantly outperforming the industry [1][2]. - The revenue breakdown for key business segments includes: - Automotive seatbelt assemblies: 1.264 billion yuan, up 39.9% - Automotive airbags: 475 million yuan, up 151.86% - Automotive steering wheels: 131 million yuan, up 71.45% [2]. Profitability - The net profit attributable to shareholders for 2024 was 260 million yuan, a year-on-year increase of 31.65% [1][3]. - The company's gross margin was 28.71%, a decrease of 2.81 percentage points year-on-year [3]. Cost Management - The company effectively controlled expenses, with sales, management, and R&D expense ratios at 1.78%, 3.75%, and 4.97%, respectively, showing reductions compared to the previous year [3]. - R&D investment increased to 98 million yuan, a year-on-year growth of 46.27% [3]. Market Position and Product Development - The company is benefiting from the domestic automotive parts localization trend, enhancing its market position as a leading provider of passive safety systems [4]. - Customer base expansion includes partnerships with major domestic brands and new energy vehicle manufacturers, increasing its share in the passive safety system market [4]. - New product launches, particularly in airbags and steering wheels, are driving growth and transforming the company into a comprehensive supplier of passive safety systems [4]. Future Outlook - The company plans to maintain its revenue and profit forecasts for 2025 and 2026, with projected revenues of 2.591 billion yuan, 3.447 billion yuan, and 4.516 billion yuan for 2025-2027, and net profits of 447 million yuan, 593 million yuan, and 792 million yuan, respectively [5]. - The closing price on April 29, 2025, was 33.10 yuan, corresponding to a PE ratio of 16.76, 12.63, and 9.46 for 2025-2027 [5].