Company Overview - Feilong Automotive Parts Co., Ltd. has over 70 years of history, established in 1952, focusing on thermal management system solutions [1] - The company has two development phases: - Before 2017: Focused on automotive thermal management components like mechanical water pumps and turbocharger housings [1] - Since 2017: Expanded into non-automotive sectors while continuing to develop automotive thermal management products [1][2] Product Development and Market Reach - The company has established four R&D centers in Shanghai, Wuhu, Nianxiang, and Xixia, focusing on new energy thermal management components [1][2] - Products are sold nationwide and exported to over 200 domestic and international clients, serving more than 300 factory bases globally [2] Investment and Product Strategy - The company is integrating thermal management technology with various sectors, including AI, 5G, and renewable energy [3] - No additional investments in domestic automotive engine thermal management products are planned, aside from the existing subsidiary in Thailand [3] New Energy Vehicle Products - Supplies electronic pumps, temperature control valves, and integrated modules for pure electric vehicles, and exhaust manifolds for hybrid vehicles [4] Manufacturing and Supply Chain - The self-manufacturing rate of electronic pump products exceeds 90%, with key components produced in-house [5] - Major clients for new energy thermal management integrated modules include Chery, Nanjing Automobile, and Geely, with increasing orders year-on-year [5] Competitive Advantages and Market Position - The company holds a unique market position in the liquid cooling sector due to its first-mover advantage and customer-centric platform design [6] - Focuses on customized development to meet diverse client needs, offering high-performance, lightweight, and cost-effective products [6] Global Strategy and Risk Management - The company is enhancing its global strategy by establishing a production base in Thailand to mitigate risks from U.S. tariff policies [7] - The first overseas smart factory in Thailand was completed on June 26, 2025, aimed at expanding into Southeast Asia and North America [7]

Company Overview - Feilong Automotive Components Co., Ltd. is a leading enterprise in the automotive thermal management sector in China, established in 2001, with strong growth in both traditional and new energy sectors [1] - The company focuses on a dual-line penetration strategy in "automotive + general industry," targeting non-automotive fields such as 5G base stations, AI computing centers, new energy storage, hydrogen equipment, and high-end agricultural machinery [1] Client Base - The company has over 200 domestic and international clients, with more than 130 clients in the new energy sector, serving over 300 global factory bases [2] - Major domestic clients include Chery, Seres, Great Wall Motors, and Geely, while international clients include BorgWarner, Cummins, and Daimler [2] Financial Performance - From 2007 to 2024, the company's total revenue compound annual growth rate (CAGR) is 13.7%, with projected revenue of 4.723 billion yuan in 2024, a year-on-year increase of 15.34% [3] - Revenue from engine thermal management components is expected to grow by 19.4%, while new energy-related components are projected to grow by 40.44%, becoming the main growth driver [3] - In Q1 2025, revenue decreased by 10.55% to 1.11 billion yuan, but net profit increased by 3.06% to 123 million yuan, with a gross margin improvement of 4.84 percentage points to 25.33% [3] Traditional Business Stability - The traditional business, particularly the turbocharger shell, benefits from the increasing penetration of hybrid models and export growth, with 2024 sales expected to exceed 5 million units, a year-on-year increase of 27.64% [4] - The turbocharger shell currently accounts for over 45% of the company's revenue, with a market share of 20% and an existing casting capacity of 8 million units [4] - The mechanical water pump, a core product, holds a market share of 25% and has been recognized as a manufacturing champion product since 2020 [4] New Energy and Non-Automotive Expansion - Revenue from new energy and non-automotive sectors is projected to reach 526 million yuan in 2024, a year-on-year increase of 40.44% [5] - The company's electronic water pump, with a power range of 13W-3500W, has a production capacity of 5.6 million units and is expected to capture over 10% market share in 2024 [5] - A recent order with BYD for 500,000 electronic oil pumps is expected to contribute 160 million yuan in sales revenue over its lifecycle, enhancing future revenue growth [5] Capacity Expansion and International Operations - The company is expanding its production capacity in the new energy thermal management sector, with the second phase of its Zhengzhou and Wuhu factories set to achieve large-scale production [6] - The expected annual production capacity for new energy thermal management components could reach 8 million units, sufficient to meet the needs of approximately 1.2 million new energy vehicles [6] - The Thai subsidiary, Longtai Automotive Components (Thailand) Co., Ltd., is under construction with an investment of about 500 million yuan, expected to start trial production by mid-2025 and achieve full production by the end of 2025 [6] Investment Outlook - The company's dual-line strategy is anticipated to continue releasing performance elasticity with the increasing penetration of new energy vehicles and the growing demand for liquid-cooled servers [7] - Earnings per share are projected to be 0.75, 0.98, and 1.11 yuan for 2025, 2026, and 2027 respectively, with a target price of 16.6 yuan based on a 21 times price-to-earnings ratio for 2025 [7]