Company Overview - Daimay Co., Ltd. is located in Pudong New District, Shanghai, and was established on February 20, 2001. The company was listed on July 28, 2017. Its main business involves the research, production, and sales of automotive parts [1]. - The company's revenue composition includes sun visors (61.75%), headrests (18.86%), roof and roof system integration products (9.45%), roof central controllers (8.22%), and others (1.71%) [1]. Financial Performance - As of June 30, 2025, Daimay Co., Ltd. reported a revenue of 3.175 billion yuan, a year-on-year decrease of 3.35%. The net profit attributable to shareholders was 241 million yuan, down 42.56% year-on-year [2]. - Since its A-share listing, the company has distributed a total of 2.816 billion yuan in dividends, with 1.558 billion yuan distributed over the past three years [3]. Stock Performance - On September 19, 2023, Daimay's stock price fell by 2.15%, trading at 5.91 yuan per share, with a total market capitalization of 12.698 billion yuan. The stock has decreased by 11.07% year-to-date [1]. - The stock's trading volume showed a net outflow of 1.0428 million yuan from main funds, with significant selling activity [1]. Shareholder Information - As of June 30, 2025, the number of shareholders increased by 17.04% to 21,100, with an average of 101,963 circulating shares per person, up 11.07% [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 29.3771 million shares, an increase of 6.2883 million shares from the previous period [3].

Core Viewpoint - Daimei Co., Ltd. has experienced a stock price decline of 10.77% year-to-date, but has shown a recent recovery with a 3.67% increase over the last five trading days [2] Group 1: Stock Performance - As of September 8, Daimei's stock price rose by 2.07% to 5.93 CNY per share, with a total market capitalization of 12.741 billion CNY [1] - The stock has seen a trading volume of 15.5868 million CNY, with a turnover rate of 0.12% [1] - Over the past 20 days, the stock has increased by 2.95%, and over the last 60 days, it has risen by 4.59% [2] Group 2: Financial Performance - For the first half of 2025, Daimei reported a revenue of 3.175 billion CNY, a year-on-year decrease of 3.35%, and a net profit attributable to shareholders of 241 million CNY, down 42.56% year-on-year [2] - The company has distributed a total of 2.816 billion CNY in dividends since its A-share listing, with 1.558 billion CNY distributed over the last three years [3] Group 3: Shareholder Information - As of June 30, 2025, Daimei had 21,100 shareholders, an increase of 17.04% from the previous period, with an average of 101,963 circulating shares per shareholder, up 11.07% [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which increased its holdings by 6.2883 million shares to 29.3771 million shares [3]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to unexpected factors impacting Q2 performance, while maintaining a positive outlook on product expansion and long-term growth potential in the market [3][4][5]. Financial Performance - In H1 2025, the company achieved revenue of 3.175 billion yuan, a year-on-year decrease of 3.35%, and a net profit attributable to shareholders of 241 million yuan, down 42.56% year-on-year [3]. - For Q2 2025, the company reported revenue of 1.582 billion yuan, a decline of 6.71% year-on-year and 0.68% quarter-on-quarter, with a net profit of 32 million yuan, down 85.63% year-on-year and 84.53% quarter-on-quarter [3][4]. - The Q2 gross margin improved to 28.56%, an increase of 0.88 percentage points quarter-on-quarter, despite a rise in operating expense ratio to 12.36% [4]. Impact of Extraordinary Events - A fire incident at the company's subsidiary in Mexico in May 2025 resulted in an extraordinary expense of 242 million yuan, significantly affecting Q2 net profit [4]. - The loss from the fire is expected to be covered by insurance claims, mitigating the long-term financial impact [4]. Product Expansion and Growth Potential - The company has established itself as a global leader in sunshade products, holding over 40% market share in 2022, and is now expanding into headrest and ceiling products [5]. - The headrest business is expected to grow, with plans to increase supply to major clients like Chrysler and Ford, while the ceiling products present a larger market opportunity due to their higher value [5]. Profit Forecast and Investment Rating - The profit forecasts for 2025-2027 have been adjusted to 901 million yuan, 1.053 billion yuan, and 1.233 billion yuan respectively, with corresponding EPS of 0.42 yuan, 0.49 yuan, and 0.57 yuan [6]. - The investment rating is maintained at "Buy," reflecting confidence in the company's product expansion and growth prospects [6].

Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 7.40 [1][5]. Core Views - The company reported a revenue of RMB 3.17 billion for the first half of the year, a year-on-year decrease of 3.4%, and a net profit attributable to the parent company of RMB 240 million, down 42.6% year-on-year. The significant decline in Q2 net profit was primarily due to extraordinary losses from a fire at an overseas factory [1][3]. - Despite the challenges, the company is actively pursuing new product development and expanding its customer base, particularly in the North American market, which is expected to support revenue recovery [2][4]. Summary by Sections Financial Performance - In Q2, the company achieved a revenue of RMB 1.58 billion, representing a year-on-year and quarter-on-quarter decline of 6.7% and 0.7%, respectively. The net profit for Q2 was RMB 30 million, reflecting a dramatic year-on-year decrease of 85.6% [1][3]. - The gross margin improved in Q2, increasing by 0.44 and 0.88 percentage points to 28.6%, likely driven by changes in product mix. The company effectively controlled overall expenses, with sales, management, and R&D expense ratios showing slight variations [3]. Market Position and Growth Opportunities - The company holds a leading position in the sunshade board market with the highest market share. It is also expanding into the roof system integration market, leveraging opportunities in the electric vehicle sector [4]. - The company is focusing on high-value products and aims to introduce these to more automotive manufacturers, which is expected to drive performance growth [4]. Profit Forecast and Valuation - The profit forecast remains stable despite the Q2 performance decline, with expected net profits of RMB 930 million, RMB 1.11 billion, and RMB 1.29 billion for 2025 to 2027, respectively. The target price adjustment reflects a decrease in comparable company valuations [5][11].

Core Viewpoint - The report highlights a significant decline in the company's financial performance for the first half of 2025, with a notable drop in revenue and profits due to various operational challenges and external factors [2][3][10]. Company Overview and Financial Indicators - The company, Shanghai Daimay Automotive Interior Co., Ltd, specializes in the research, production, and sales of automotive interior components, with a global presence including production bases and R&D centers in multiple countries [5][10]. - Key financial metrics for the first half of 2025 include: - Revenue: CNY 3,174.87 million, a decrease of 3.35% compared to the previous year [3][10]. - Total profit: CNY 259.83 million, down 47.89% year-on-year [3][10]. - Net profit attributable to shareholders: CNY 241.33 million, a decline of 42.56% [3][10]. - Basic earnings per share: CNY 0.11, a reduction of 45% [3][10]. Operational Challenges - The company faced several operational challenges, including: - A fire incident at its Mexican subsidiary on May 11, 2025, resulting in significant property damage and an estimated loss of USD 33.75 million [3][10][11]. - Increased tariffs imposed by the U.S. government on goods shipped from Mexico and Vietnam, adding approximately USD 3.94 million in costs [3][10][11]. - A decrease in sales from some North American electric vehicle customers, impacting profit contributions [3][10][11]. Industry Context - The automotive industry is experiencing a complex landscape characterized by rapid growth in electric vehicles, but also facing challenges such as price wars and market segmentation [10][12]. - In the first half of 2025, China's automotive production and sales reached 15.62 million and 15.65 million units, respectively, marking year-on-year growth of 12.5% and 11.4% [10][12]. - The global automotive market saw a total sales volume of 46.32 million vehicles, with varying growth rates across different regions [10][12]. Competitive Advantages - The company has established a strong brand presence and technical capabilities, serving major global automotive manufacturers such as Bentley, Porsche, and Tesla [5][15]. - It has developed a comprehensive supply chain and production network, ensuring timely delivery and quality assurance for its products [19][20]. - The company emphasizes innovation and R&D, with a focus on developing new technologies and products to maintain its competitive edge in the market [12][16].

Group 1 - The company, Shanghai Daimay Automotive Interior Co., Ltd, has issued convertible bonds totaling up to RMB 908 million, approved by the China Securities Regulatory Commission [3][4][18] - The bonds were issued on July 18, 2023, with a total of 9,079,390 bonds at a face value of RMB 100 each, raising a net amount of RMB 896.99 million after deducting issuance costs [4][18] - The bonds are set to mature in six years, with a tiered interest rate starting at 0.30% in the first year and increasing to 2.00% by the sixth year [5][19] Group 2 - The initial conversion price for the bonds was set at RMB 15.72 per share, which has been adjusted to RMB 7.37 per share as of June 4, 2025, due to profit distribution [9][21] - The company reported a net profit of RMB 802.18 million for the year 2024, representing a 22.66% increase compared to the previous year [16][17] - The company has established relationships with major automotive manufacturers globally, including brands like Bentley, Porsche, and Tesla, positioning itself as a leader in the automotive interior parts industry [16][17]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.18 CNY [2][5]. Core Views - The company is experiencing continuous overseas capacity expansion, with the roof business becoming a new growth point [1]. - The revenue and profit forecasts have been adjusted, with projected net profits for 2025-2027 being 963 million, 1.164 billion, and 1.365 billion CNY respectively [2]. - The company’s revenue for 2024 is expected to be 6.377 billion CNY, reflecting an 8.8% year-on-year growth, while the net profit is projected to be 802 million CNY, a 22.7% increase [9]. Financial Information - The company’s financial performance shows a steady increase in revenue and net profit over the years, with 2023 revenue at 5.861 billion CNY and a net profit of 654 million CNY [4]. - The gross margin is expected to improve slightly from 26.9% in 2023 to 27.5% in 2027, while the net profit margin is projected to rise from 11.2% to 13.8% over the same period [4]. - The company’s earnings per share (EPS) are forecasted to grow from 0.40 CNY in 2023 to 0.83 CNY in 2027 [4]. Business Development - The roof business is entering a phase of significant growth, with sales of roof products expected to increase substantially, particularly in the North American market [9]. - The company has achieved a notable increase in sales for its roof products, with a projected revenue of 6.03 billion CNY for roof systems, marking an 80.6% year-on-year growth [9]. - The construction of a new production facility in Mexico is progressing, with the project expected to reach operational status by the end of 2024 [9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.18 CNY [2][5] Core Views - The company is experiencing continuous overseas capacity expansion, with the roof business becoming a new growth point [1] - The revenue and profit forecasts have been adjusted, with projected net profits for 2025-2027 at 963 million, 1.164 billion, and 1.365 billion CNY respectively, reflecting a growth rate of 20.0%, 20.9%, and 17.3% [2][4] Financial Summary - The company’s revenue for 2023 is reported at 5.861 billion CNY, with a year-on-year growth of 13.9%. Projections for 2024, 2025, 2026, and 2027 are 6.377 billion, 7.387 billion, 8.638 billion, and 9.875 billion CNY, respectively, indicating growth rates of 8.8%, 15.8%, 16.9%, and 14.3% [4] - The gross profit margin is expected to improve gradually from 26.9% in 2023 to 27.5% in 2027, while the net profit margin is projected to increase from 11.2% to 13.8% over the same period [4] - The company’s operating profit for 2023 is 802 million CNY, with forecasts of 943 million, 1.107 billion, 1.344 billion, and 1.581 billion CNY for the following years, showing growth rates of 35.7%, 17.6%, 17.4%, and 21.4% [4] Business Development - The roof business is entering a phase of significant growth, with sales of roof products expected to increase substantially, supported by contracts with major clients such as General Motors, Ford, Tesla, and Rivian [9] - The company’s overseas business accounted for 86.4% of its revenue in 2024, with production facilities in Mexico ensuring compliance with trade agreements, thus minimizing the impact of potential tariffs [9] - The construction of a new production facility in Mexico is progressing, with an expected annual output of 700,000 roof products, which is anticipated to be operational by the end of 2024 [9]

Core Viewpoint - The company reported stable financial performance for 2024 and Q1 2025, with revenue and net profit growth indicating a solid operational foundation and potential for future expansion in product categories [2][3][4]. Financial Performance Summary - In 2024, the company achieved revenue of 6.377 billion yuan, a year-on-year increase of 8.80%, and a net profit attributable to shareholders of 802 million yuan, up 22.66% [2]. - For Q4 2024, the company recorded revenue of 1.573 billion yuan, a year-on-year increase of 8.30%, and a net profit of 179 million yuan, reflecting a significant year-on-year growth of 56.03% [2][3]. - In Q1 2025, revenue was 1.593 billion yuan, a slight year-on-year increase of 0.22%, with net profit reaching 209 million yuan, up 7.10% [2][3]. Operational Stability - The company's Q4 2024 gross margin was 22.48%, down 2.65 percentage points year-on-year, while Q1 2025 gross margin was 27.68%, showing a minor decline of 0.17 percentage points [3]. - The period expense ratio for Q4 2024 was 4.78%, a decrease of 7.67% quarter-on-quarter, primarily due to reductions in management and financial expense ratios [3]. - The company recorded an asset impairment loss of 80 million yuan in Q4 2024, which slightly impacted quarterly performance [3]. Product Expansion and Growth Potential - The company has established itself as a global leader in sunshade products, holding over 40% market share in 2022, and is now expanding into headrest and ceiling products [4][5]. - The headrest business is expected to grow as the company increases its supply to major clients like Chrysler and Ford [4]. - The ceiling products, which share core manufacturing processes with sunshades, present significant market potential and are anticipated to contribute to revenue growth as new contracts are secured [5]. Profit Forecast and Investment Rating - The company's net profit forecasts for 2025 and 2026 have been adjusted to 927 million yuan and 1.091 billion yuan, respectively, with a new forecast for 2027 set at 1.280 billion yuan [6]. - Corresponding earnings per share (EPS) are projected at 0.56 yuan, 0.66 yuan, and 0.77 yuan for 2025, 2026, and 2027, with price-to-earnings ratios of 14.26, 12.12, and 10.33 [6]. - The expansion into new product categories is expected to enhance growth prospects, leading to a maintained "buy" rating for the company's stock [6].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's overall operations are stable, and the introduction of new ceiling products opens up growth opportunities [1] - The company has developed into a global leader in the sunshade board business, with a market share exceeding 40% in 2022 [1] - The company is expanding its product categories, particularly in headrests and ceiling products, which are expected to contribute to revenue growth [1] Financial Performance Summary - In 2024, the company achieved total revenue of 6.377 billion yuan, a year-on-year increase of 8.80% [1] - The net profit attributable to shareholders in 2024 was 802.18 million yuan, representing a year-on-year growth of 22.66% [1] - For Q4 2024, the company reported a revenue of 1.573 billion yuan, a year-on-year increase of 8.30% and a quarter-on-quarter increase of 3.61% [1] - The gross profit margin for Q4 2024 was 22.48%, a decrease of 2.65 percentage points year-on-year [1] - The company expects net profits of 927 million yuan in 2025 and 1.091 billion yuan in 2026, with corresponding EPS of 0.56 yuan and 0.66 yuan [1][8] Product Development and Market Expansion - The company is actively expanding its ceiling product line, which has a higher value and larger market space compared to existing products [1] - The headrest business is expected to grow as the company increases its supply to major clients like Chrysler and Ford [1] - The successful entry of ceiling products into the supply chains of new energy vehicle manufacturers in North America is anticipated to drive future revenue growth [1]