Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [5]. Core Views - The company focuses on the high-precision small parts market for aluminum die-casting and has acquired German company Dico to develop the European market [5]. - The company is expected to achieve a year-on-year net profit growth of 33% in 2024, with revenues projected to reach 577 million yuan, a 25.97% increase [5]. - The automotive parts segment is anticipated to generate 332 million yuan in revenue in 2024, reflecting a 32.06% year-on-year growth, driven by the increasing demand for lightweight aluminum components in electric vehicles [5][9]. Financial Performance - In 2024, the company is projected to achieve revenues of 577 million yuan and a net profit of 57 million yuan, with respective year-on-year growth rates of 25.97% and 32.63% [7]. - The company’s earnings per share (EPS) are expected to grow from 0.30 yuan in 2024 to 0.60 yuan by 2027, indicating a strong upward trend [7]. - The return on equity (ROE) is forecasted to increase from 11.72% in 2024 to 17.09% in 2027, showcasing improved profitability [7]. Market Dynamics - The global automotive market is projected to grow by 2.10% in 2024, with electric vehicle sales expected to rise by 24.40% [5]. - The company is strategically positioned to benefit from the increasing demand for electric vehicle components, with significant partnerships established with major clients such as Huawei and Geely [5][9]. - The electric tool market is also showing signs of recovery, with a projected revenue increase of 41.94% in 2024, driven by rising consumer demand [5][6]. Strategic Initiatives - The company has expanded its international presence by establishing operations in Mexico and Thailand, and successfully completed the acquisition of Dico to enhance its market reach in Europe [9]. - The focus on research and development is evident, with the company holding 201 patents, including 11 invention patents, which supports its competitive edge in technology [5]. Valuation Metrics - The company’s price-to-earnings (P/E) ratio is expected to decrease from 69.92 in 2024 to 34.89 by 2027, indicating a more attractive valuation over time [7]. - The projected revenue growth rates for the next few years are 25.97% for 2024, 22.21% for 2025, and gradually declining to 19.60% by 2027, reflecting a robust growth trajectory [7].

Core Viewpoint - The report highlights the growth potential of Jiyang Precision (836720.BJ) in the aluminum die-casting market, projecting a 33% year-on-year increase in net profit for 2024, driven by strong demand in the automotive and electronic sectors [1][5]. Group 1: Financial Performance - Jiyang Precision focuses on zinc-aluminum alloy precision die-casting products, expecting a revenue of 577 million yuan in 2024, representing a year-on-year growth of 25.97% [1]. - The company anticipates a net profit of 56.75 million yuan for 2024, reflecting a year-on-year increase of 32.63% [1]. - In Q1 2025, the company achieved a revenue of 155 million yuan, up 48.45% year-on-year, with a net profit of 15.65 million yuan, marking a 49.27% increase [1]. Group 2: Market Demand and Trends - The demand for aluminum alloy components is increasing due to the lightweight trend in electric vehicles, with automotive parts revenue projected to reach 332 million yuan in 2024, a 32.06% increase [2]. - The global automotive market is expected to grow by 2.10% in 2024, with global electric vehicle sales projected to rise by 24.40% [2]. - The company has begun mass production of steering motors for a certain electric vehicle company and has seen rapid growth in battery pack heater products for major automotive brands [2]. Group 3: Product Development and Innovation - Jiyang Precision has a strong focus on R&D, holding 201 patents, including 11 invention patents and 190 utility model patents [1]. - The company’s electronic and electrical components revenue is expected to grow by 41.94% in 2024, driven by increased demand for electric tools and home cleaning appliances [3]. - The company’s steam heater, a core product with invention patents, is widely used in well-known cleaning appliance brands [3]. Group 4: International Expansion - The company is expanding its international presence by establishing operations in Mexico and Thailand, and has successfully acquired German company Dico to develop the European market [4][5]. - The acquisition of Dico is expected to enhance Jiyang Precision's market entry into Europe, leveraging Dico's established customer relationships and market reputation [4][5]. - The company aims to continue seeking quality acquisition targets and accelerate the construction of its Thailand factory to meet growing overseas demand [5].

吉冈精密 20250515 摘要 • 吉冈精密 2024 年末总资产达 8.66 亿元，同比增长 39.48%；总负债 3.82 亿元，同比增长 121.85%；归属于公司股东的净资产为 4.84 亿元， 同比增长 7.89%。资产负债变动主要受货币资金、应收账款、存货、固定 资产、在建工程及短期借款增长影响，需关注负债增长带来的财务风险。 • 2024 年度汽车零部件业务占吉冈精密总营收的 57.57%，公司战略转型 重点开拓新能源汽车零部件市场。通过收购德国思科股权，并利用德国帝 科现有平台开发欧洲市场，同时布局墨西哥和泰国，以承接海外订单，表 明公司积极拓展国际市场。 • 为应对国际贸易环境挑战，吉冈精密在墨西哥和泰国进行生产基地布局， 并积极寻求海外并购机会，加快泰国工厂建设，以满足不断增长的海外市 场需求。此举旨在分散风险，确保公司在全球市场的长远发展。 • 吉冈精密通过引进先进管理模式和技术，提升经营管理的信息化和高效化 水平，完善激励制度，保持管理层和核心团队的稳定，提高工作效率。同 时，公司不断完善法人治理结构和内部控制制度，以保障经营活动的规范 有序，维护股东权益。 Q&A 吉冈精密在 20 ...