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].

Summary of Yoshioka Precision's Conference Call Company Overview - Yoshioka Precision's total assets reached 866 million yuan by the end of 2024, a year-on-year increase of 39.48% [2] - Total liabilities amounted to 382 million yuan, reflecting a significant year-on-year increase of 121.85% [2] - Net assets attributable to shareholders were 484 million yuan, with a year-on-year growth of 7.89% [2] Core Business Insights - The automotive parts business accounted for 57.57% of total revenue in 2024, with a strategic focus on expanding into the new energy vehicle (NEV) parts market [2][5] - Yoshioka Precision acquired shares in a German company, Cisco, and plans to leverage its subsidiary, Deiko, to develop the European market while also establishing production bases in Mexico and Thailand to capture overseas orders [2][6] Financial Performance - The company reported a stable revenue growth with an average growth rate of 22.87% over the past four years, and a net profit average growth rate of 10.14% [3] - Cash and cash equivalents increased by 167.64%, accounts receivable rose by 56.44%, and inventory grew by 46.54% [3][4] Risk Management and International Expansion - To address challenges in the international trade environment, Yoshioka Precision is actively seeking overseas acquisition opportunities and accelerating the construction of its factory in Thailand to meet growing overseas demand [2][6] Management and Operational Efficiency - The company is enhancing its management practices by introducing advanced management models and technologies to improve operational efficiency and information management [7] - Yoshioka Precision is also refining its corporate governance structure and internal control systems to ensure orderly operations and protect shareholder rights [8] Fundraising and Project Updates - The company raised a total of 253 million yuan through stock issuance, with a net amount of 244 million yuan allocated for the intelligent transformation of its production line and working capital [10] - All raised funds have been utilized as per regulations, with no changes in the use of funds that could harm shareholder interests [10] Research and Development Achievements - Yoshioka Precision holds 201 patents, including 11 invention patents and 190 utility model patents, showcasing its commitment to technological innovation [11] - The company’s self-developed steam heater has become a designated supplier for Shark, a leading company in the steam mop industry [11] Product Portfolio - The main products include aluminum alloy, zinc alloy, and precision metal components, widely used in automotive parts, cleaning appliance components, and power tool parts [12] - The automotive components include steering gears, filter bases, and motor housings, applicable in both traditional and new energy vehicles [12] Certifications and Honors - The company has obtained multiple certifications, including ISO9001, ISO14001, and has been recognized as a green factory in Jiangsu Province [13][14] - Yoshioka Precision has received several awards, including being listed among the top fifty casting enterprises in China and recognized as a high-tech enterprise in Jiangsu Province [14] Future Outlook - The strategic goal is to focus on professional technology, high quality, low-cost, and timely delivery while expanding in the NEV sector [15] - The company aims to enhance its management practices and governance structures to ensure sustainable development and protect shareholder interests [15]