Core Viewpoint - The report highlights significant growth in the air conditioning pipe business of Sanxiang Technology, driven by the increasing penetration of new energy vehicles, and emphasizes the importance of the company's Thai subsidiary's progress [1][3]. Financial Performance - In Q1 2025, the company achieved revenue of 258 million yuan, a year-on-year increase of 22.37%, and a net profit attributable to shareholders of 23.68 million yuan, up 320.92% year-on-year [1]. - For the year 2024, the company reported revenue of 966 million yuan, a growth of 16.59%, but a decline in net profit attributable to shareholders by 23.06% to 64.45 million yuan [1]. - The company adjusted its profit forecasts for 2025-2026, projecting net profits of 72 million yuan and 93 million yuan respectively, with an EPS of 0.74 and 0.95 yuan per share [1]. Business Development - The company is actively expanding its international business and developing new product lines, particularly in the air conditioning and fuel pipe sectors [2]. - In 2024, the company’s total assembly product revenue reached 757 million yuan, a year-on-year increase of 12.65%, while revenue from hose products grew by 46.21% to 192 million yuan [2]. - The new factory of the Thai subsidiary, which began operations in April 2024, is expected to enhance the company's ability to penetrate the U.S., European, and Southeast Asian markets [3]. Market Trends - The new energy business accounted for over 20% of the company's revenue in 2024, with the growth of new energy vehicles significantly driving demand for cooling pipelines [3]. - The company is expanding its production capacity for air conditioning pipes and has introduced a new nylon pipe production line to meet the lightweight requirements of new energy vehicles [3].

Investment Rating - The investment rating for the company is "Outperform" (Maintain) [2] Core Views - The company has shown strong revenue growth, with Q1 2025 revenue at 258 million yuan, a year-on-year increase of 22.37%, and a net profit of 23.68 million yuan, up 320.92% year-on-year [4] - The company is expected to benefit from the increasing penetration of new energy vehicles, particularly in the air conditioning pipe business, leading to revised profit forecasts for 2025-2027 [4][6] - The company is actively expanding its international business and product lines, with a focus on the North American and European markets [5][6] Financial Summary - The company's total revenue for 2024 is projected to be 966 million yuan, with a year-on-year growth of 16.6% [7] - The net profit for 2024 is expected to be 64 million yuan, a decline of 23.1% year-on-year, but is projected to recover to 72 million yuan in 2025 [7][10] - The gross margin is expected to be around 33.3% in 2025, slightly down from 34.0% in 2024 [7][10] - The earnings per share (EPS) is forecasted to be 0.74 yuan in 2025, with a price-to-earnings (P/E) ratio of 24.2 times [4][7] Business Development - The company is expanding its product offerings, particularly in the air conditioning and fuel pipe sectors, with significant growth in hose product revenue, which increased by 46.21% year-on-year [5] - The new factory in Thailand, operational since April 2024, is expected to enhance the company's ability to serve the U.S., European, and Southeast Asian markets [6] - The company's new energy business is projected to account for over 20% of total revenue in 2024, driven by the demand for cooling pipelines in new energy vehicles [6]