Core Viewpoint - The recent trend of newly listed stocks shows a pattern where they peak on the first day of trading and then experience a continuous decline, leading to significant losses for investors [1][8]. Company Overview - Tianyouwei, which specializes in the research, design, production, sales, and service of automotive instruments, is expanding into the smart cockpit sector. Its main products include electronic combination instruments, full LCD combination instruments, dual-screen instruments, in-car infotainment systems, air conditioning controllers, wireless chargers, and automotive electronic development services [5]. IPO Details - Tianyouwei was listed on April 24 with an initial offering price of 93.5 yuan. The underwriting institution, CITIC Jianzhong, aimed to raise approximately 3 billion yuan but ended up raising 3.74 billion yuan, exceeding the target by 736 million yuan. The total number of shares issued was 40 million, and CITIC Jianzhong earned around 175 million yuan in underwriting fees [7][8]. Stock Performance - On its first trading day, Tianyouwei opened high, reaching a peak of 140 yuan, and closed at 116 yuan, marking a 24% increase. However, the stock price declined for four consecutive days, dropping to 99 yuan, nearing the point of breaking its initial offering price [8][11]. - Similar trends were observed in other newly listed companies, such as Jiangshun Technology, which saw its stock price fall from 84 yuan to 55 yuan within five days, and Honggong Technology, which experienced a decline from 83 yuan to 51 yuan over ten days [11][14]. Market Sentiment - The current sentiment towards new stocks is cautious, with many investors wary of the potential for significant losses after the initial trading day. The analogy of a bride who looks beautiful on her wedding day but changes the next day reflects the unpredictability and volatility of newly listed stocks [17].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 44.66 CNY, based on an average PE valuation of 29 times for 2025 [2][5]. Core Insights - The automotive electronics business is experiencing rapid growth, with a significant increase in revenue and an optimized customer structure [1][9]. - The company forecasts net profits for 2025-2027 to be 811 million, 1,012 million, and 1,253 million CNY respectively, reflecting a growth rate of 24.5% and 24.9% for 2026 and 2027 [2][4]. Financial Performance - The company reported a revenue of 10,158 million CNY in 2024, a year-on-year increase of 42.3%, with a net profit of 651 million CNY, up 40.1% [9]. - The gross margin for 2024 was 20.7%, with a slight decline due to accounting changes, while operating cash flow improved by 33.4% [9]. - The automotive electronics segment generated 76.03 billion CNY in revenue, marking a 57.6% increase, with significant market share gains in HUD and wireless charging products [9]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are 12,469 million, 14,699 million, and 17,273 million CNY respectively, with corresponding growth rates of 22.8%, 17.9%, and 17.5% [4][12]. - The company expects to maintain a net profit margin of around 6.5% to 7.3% over the forecast period, with a return on equity projected to rise from 9.1% in 2023 to 15.0% in 2027 [4][12].