Investment Rating - The report gives a "Buy" rating for the company, JinGu Co., Ltd. [6][64] Core Viewpoints - JinGu Co., Ltd. has been deeply engaged in the wheel industry for nearly 30 years, transitioning its product line towards high-value-added alloy wheels, particularly focusing on niobium micro-alloy wheels. The company has shown stable revenue growth and improved profitability due to product structure upgrades and increased sales of high-margin new products [3][4][6]. - The global automotive wheel market is projected to grow significantly, with a compound annual growth rate (CAGR) of approximately 6.3% from 2024 to 2034, providing a favorable environment for JinGu's innovative products to replace traditional wheels [4][36]. - The company is actively exploring horizontal applications for its niobium micro-alloy materials, which have shown potential in various industries, including robotics and electric two-wheel vehicles, thereby creating new growth opportunities [5][58][59]. Summary by Sections 1. Company Overview - JinGu Co., Ltd. focuses on the research, manufacturing, and sales of automotive wheels, maintaining a stable revenue structure with approximately 65% of its income from steel and assembled wheels. The company is transitioning towards high-value-added products, particularly niobium micro-alloy wheels [3][17][26]. 2. Market Potential - The global automotive wheel market is expected to reach approximately 48.68 billion USD in 2024, with a forecasted growth to around 90 billion USD by 2034. The demand for lightweight wheels is increasing, particularly in the electric vehicle sector, which requires enhanced energy efficiency [4][36][38]. 3. Competitive Advantages - JinGu's unique niobium micro-alloy technology allows for significant weight reduction, cost savings, and lower carbon emissions, positioning the company favorably against traditional aluminum and steel wheels. The company has established strong relationships with leading domestic and international automotive manufacturers [4][45][46]. 4. Financial Projections - The company is projected to achieve revenues of 44.3 billion, 57.9 billion, and 72.5 billion CNY from 2025 to 2027, with corresponding net profits of 0.7 billion, 2.4 billion, and 4.6 billion CNY, reflecting substantial growth rates [6][64]. 5. Investment Recommendations - Given the company's long-standing expertise in the wheel industry and its innovative product offerings, it is expected to provide significant performance and valuation flexibility. The report suggests that JinGu's unique product capabilities and strategic partnerships will drive future growth [6][64].

Group 1: Company Overview - Zhejiang Jingu Co., Ltd. is a high-tech enterprise focused on the research, production, and sales of automotive wheels, recognized as a "specialized, refined, distinctive, and innovative" enterprise in Zhejiang Province [3] - The company emphasizes technological innovation and product development, with a comprehensive research and development system [3] - The revolutionary new material, niobium micro-alloy, developed by the company, offers high strength (up to 2000 MPa), good toughness, low cost, and reduced carbon emissions, making it suitable for various applications [3] Group 2: Product Highlights - The company's Avatar low-carbon wheel is a lightweight product characterized by innovative design, high precision, strength, better balance, and durability, meeting customer demands in both passenger and commercial vehicle sectors [3] - The Avatar low-carbon wheel has gained traction in the new energy vehicle market, with multiple contracts from new energy vehicle manufacturers [3] - The company is accelerating capacity construction to meet increasing customer demand, leveraging its first-mover and scale advantages [3] Group 3: Financial Performance - For the first half of 2025, the company expects a net profit attributable to shareholders of approximately 30 million to 45 million yuan, representing a year-on-year growth of 44.06% to 116.08% [4] - The net profit after deducting non-recurring gains and losses is projected to be between 25 million and 37.5 million yuan, with a year-on-year increase of 58.09% to 137.14% [4] - The growth in performance is primarily driven by the positive performance of both traditional wheels and Avatar low-carbon wheels, with significant contributions from the latter [4] Group 4: Future Plans and Innovations - The company plans to enhance its research and development efforts in new materials and technologies, exploring applications in industries such as robotics and low-altitude aircraft [5] - There are plans for overseas expansion of the Avatar production line to better serve customers and meet growing order demands [5] - The company aims to improve its capacity layout based on market demand and existing orders, while also actively exploring overseas markets [5]