Core Insights - The company reported a decline in revenue and net profit for the first half of 2025, with revenue at 2.096 billion yuan, down 2.47% year-on-year, and net profit at 201 million yuan, down 24.22% year-on-year [1] - In Q2 2025, the company experienced a revenue increase of 3.89% year-on-year, reaching 1.05 billion yuan, despite a decline in global deliveries from major client Tesla [2] - The company has initiated production at its Mexico facility and is expanding its operations in Thailand, aiming to enhance its international growth and customer base [3] Financial Performance - For H1 2025, the company's net profit was 201 million yuan, a decrease of 24.22% year-on-year, while the non-recurring net profit was 177 million yuan, down 25.65% year-on-year [1] - In Q2 2025, the gross margin improved to 22.75%, up 1.10 percentage points year-on-year, while the net margin was 9.98%, down 0.66 percentage points year-on-year [2] - The company’s expenses showed normal fluctuations, with sales, management, R&D, and financial expense ratios varying slightly compared to previous periods [2] Strategic Developments - The Mexico facility began operations in June 2025, focusing on localizing supply for lightweight products and enhancing production capacity through automation [3] - The company is also developing new business lines in energy storage and robotics, achieving approximately 300 million yuan in revenue from energy storage components in H1 2025, marking significant growth [3] - The company is advancing its magnesium alloy technology and has initiated collaborations for magnesium alloy electric drive housing projects with international clients [3] Investment Outlook - The company is positioned as a strong beneficiary in the lightweight sector of the new energy vehicle market, with projected revenues of 5.47 billion yuan, 6.72 billion yuan, and 8.21 billion yuan for 2025-2027 [4] - Expected net profits for the same period are forecasted at 500 million yuan, 610 million yuan, and 770 million yuan, with corresponding EPS of 0.52, 0.64, and 0.81 yuan [4] - The company maintains a "recommended" rating based on its market share acquisition capabilities and technological advancements [4]

Core Viewpoint - The report indicates that Xusheng Group's performance in Q2 2025 met expectations, driven by globalization and new business initiatives, leading to a "buy" rating for the company [1] Financial Performance - In H1 2025, the company reported revenue of 2.096 billion yuan, a year-on-year decrease of 2.47%, and a net profit attributable to shareholders of 201 million yuan, down 24.22% year-on-year [2] - Q2 2025 revenue reached 1.050 billion yuan, reflecting a year-on-year increase of 3.89% and a quarter-on-quarter increase of 0.29% [2] - The net profit for Q2 2025 was 105 million yuan, a decrease of 2.41% year-on-year but an increase of 9.77% quarter-on-quarter [2] - The gross margin for Q2 2025 was 22.75%, up 1.10 percentage points year-on-year and 1.95 percentage points quarter-on-quarter [2] Business Expansion - The company's Mexico factory commenced operations in June 2025, enhancing its overseas growth engine and securing important customer orders through OTS sample deliveries [3] - A new facility in Thailand began construction in July 2025, aimed at serving the rapidly growing Southeast Asian electric vehicle and high-end manufacturing markets [3] - The company has developed core components for energy storage systems, achieving approximately 300 million yuan in revenue in H1 2025, marking significant growth [3] Investment Outlook - The company is positioned as a strong beneficiary in the lightweighting sector for electric vehicles, with projected revenues of 5.47 billion yuan, 6.72 billion yuan, and 8.21 billion yuan for 2025, 2026, and 2027 respectively [4] - Expected net profits for the same years are 500 million yuan, 610 million yuan, and 770 million yuan, with corresponding EPS of 0.52 yuan, 0.64 yuan, and 0.81 yuan [4] - The stock is projected to have a PE ratio of 28, 22, and 18 times for 2025, 2026, and 2027 respectively, maintaining a "recommended" rating [4]

Summary of Magnesium Alloy Industry Conference Call Industry Overview - The magnesium alloy industry is experiencing rapid growth, particularly in the automotive and robotics sectors, with the market for electric drive housings projected to reach 30 billion RMB, and total market space expected to exceed 100 billion RMB when including robotics applications [4][12][18]. Key Points Magnesium Resource Advantage - China holds 70% of the global magnesium supply, providing a significant advantage in resource control and processing costs [3][6]. Market Dynamics - By 2024, 70% of magnesium alloy usage will be in the automotive sector, with the remainder used in 3C products and aerospace [1][3]. - The average price of magnesium is projected to be 17,000-18,000 RMB per ton in the first half of 2025, lower than aluminum prices, which are around 20,000 RMB per ton [1][6]. Technological Advancements - Breakthroughs in production techniques, such as liquid and semi-solid processes, have improved the strength, corrosion resistance, and elongation of magnesium alloys [8][16]. - Companies like New Yuan Zhuomei are enhancing product quality and have begun stable mass production of electric drive housings [7][9]. Current Applications - Magnesium alloys are increasingly used in automotive applications, with companies like Xpeng, Geely, and Great Wall Motors incorporating magnesium alloy electric drive housings into their platforms [2][4]. - The average magnesium usage per vehicle in China is currently between 2-5 kg, with SAIC using approximately 15 kg in their electric drive housings [9]. Supply Chain and Production Capacity - Major players like Baowu Meiyu and New Yuan Zhuomei are expanding their production capacities, with Baowu adding 450,000 tons of raw coal and 400,000 tons of magnesium alloy capacity [10][11]. - The upstream supply chain includes companies like Baowu Meiyu, Ruige Metals, and Shanxi Zhenxing, which are enhancing supply to meet growing demand [10]. Competitive Landscape - New Yuan Zhuomei is leading in the electric drive housing market with a gross margin of around 30%, significantly higher than competitors [11]. - Other notable companies include Wan Fang Ao Wei, which has a strong presence in North America, and Baowu Meiyu, which is actively seeking to expand its customer base [11][19]. Future Trends - The magnesium alloy industry is expected to enter a phase of rapid mass production by 2026, driven by declining prices and increased applications [16]. - The demand for magnesium alloys in the robotics sector is also anticipated to grow, with companies like Tesla and Xiaomi exploring their use [18]. Investment Recommendations - New Yuan Zhuomei is highlighted as a key investment opportunity due to its significant profit potential and market share [19]. - Other companies to watch include Baowu Meiyu, Wan Fang, and transitioning aluminum die-casting firms like Aikedi and Xusheng, which are entering the magnesium alloy market [19]. Additional Insights - The magnesium alloy industry is seen as a strategic sector for national security due to its lightweight and cost-effective properties, making it a focus for future development [16][17].

Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 16.4 yuan [1]. Core Views - The company's performance is under pressure in the short term, but there are signs of improvement in operational performance. New business areas such as magnesium alloy, energy storage, and robotics are being developed simultaneously [7][8]. - The company reported a revenue of 4.41 billion yuan for 2024, a year-on-year decrease of 9%, and a net profit of 416 million yuan, down 42% year-on-year. For Q1 2025, revenue was 1.05 billion yuan, down 8% year-on-year, with a net profit of 96 million yuan, down 39% year-on-year [1][3]. Financial Summary - **2024 Financial Performance**: - Total revenue: 4,409 million yuan, YoY growth: -8.8% - Net profit: 417 million yuan, YoY growth: -41.7% - Earnings per share: 0.44 yuan [3][4]. - **2025-2027 Financial Projections**: - Expected revenue growth: 5,029 million yuan in 2025, 6,091 million yuan in 2026, and 6,970 million yuan in 2027, with respective YoY growth rates of 14.1%, 21.1%, and 14.4% [3][8]. - Projected net profit: 521 million yuan in 2025, 634 million yuan in 2026, and 770 million yuan in 2027, with respective YoY growth rates of 25.2%, 21.6%, and 21.5% [3][8]. - **Valuation Metrics**: - Price-to-earnings (P/E) ratio is projected to be 28 in 2024, decreasing to 15 by 2027 [3][4]. - Price-to-book (P/B) ratio is expected to remain around 1.8 to 1.5 from 2024 to 2027 [3][4]. Business Development - The company is actively developing new business lines: - **Magnesium Alloy**: Successful development of semi-solid injection molded motor housings, with collaborations with foreign clients [7]. - **Energy Storage**: Revenue from energy storage components reached 234 million yuan in 2024, more than doubling year-on-year [7]. - **Robotics**: Investment in humanoid robots, with key product developments and project engagements with multiple clients [7].

Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 16.4 CNY [1][7]. Core Views - The company's performance is under pressure in the short term, but there are signs of improvement in operational performance. New business areas such as magnesium alloy, energy storage, and robotics are being developed simultaneously [1][7]. Financial Performance Summary - In 2024, the company reported a revenue of 4.41 billion CNY, a year-on-year decrease of 9%, and a net profit attributable to shareholders of 416 million CNY, down 42% year-on-year. The first quarter of 2025 saw a revenue of 1.05 billion CNY, a decrease of 8% year-on-year, with a net profit of 96 million CNY, down 39% year-on-year [1][3]. - The company expects revenues to grow to 5.03 billion CNY in 2025, with a projected year-on-year growth rate of 14.1% [3][8]. - The net profit is projected to increase to 521 million CNY in 2025, reflecting a year-on-year growth of 25.2% [3][8]. Business Development Summary - The company is actively developing its magnesium alloy business, which has seen significant price reductions in the past 1-2 years, leading to increased applications in the die-casting industry. A successful collaboration on magnesium alloy electric drive housing has been established with a foreign client [7]. - The energy storage segment has also been a focus, with revenue from energy storage products reaching 234 million CNY in 2024, more than doubling year-on-year [7]. - In the robotics sector, the company has invested in the development of key products such as joint shells and torso components, securing projects with several domestic and international clients [7].

0 1 事 件 概 述 公司披露2024年年度报告和2025年第一季度报告：1）2024年度实现营收44.09亿元，同比-8.79%；归母净利润4.16亿元，同比-41.71%；扣非归母净利润3.58亿元，同 比-46.76%；2）2025Q1营收10.46亿元，同比-8.12%，环比-7.76%；归母净利润0.96亿元，同比-39.15%，环比+2.53%；扣非归母净利润0.81亿元，同比-42.67%，环 比+10.10%。 公司深耕镁合金半固态注射技术，成功研发半固态注射成型的电机壳体，并已跟国外某客户就镁合金电驱壳体项目开展正式合作。同时，依托铝合金精密加工优势进 军人形机器人领域，聚焦关节壳体、躯干结构件研发，获多家海内外客户项目定点。 0 3 投 资 建 议 0 2 分 析 判 断 公司是新能源车轻量化确定性较强的受益标的，凭借领先的工艺、研发及客户拓展能力，快速抢占市场份额。我们预计公司2025-2027年营收分别为54.7/67.2/82.1亿 元，归母净利为5.3/6.5/8.1亿元，对应EPS分别为0.55/0.68/0.85元。按照2025年4月25日收盘价12.61元，对应PE分别为2 ...

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][6]. Core Views - The company is positioned as a strong beneficiary in the lightweighting of new energy vehicles, leveraging its advanced technology, research capabilities, and customer expansion to rapidly capture market share [4]. - The company has made significant progress in overseas project development and the robotics business, with a notable order of approximately 1.9 billion yuan from mainstream North American electric vehicle platforms [3]. - The company is expanding its magnesium alloy capabilities and entering the humanoid robotics sector, focusing on the development of joint shells and torso structural components [3]. Financial Performance Summary - For the fiscal year 2024, the company reported a revenue of 4.409 billion yuan, a year-on-year decrease of 8.79%, and a net profit attributable to shareholders of 416 million yuan, down 41.71% year-on-year [1][5]. - In Q1 2025, the company achieved a revenue of 1.046 billion yuan, a decrease of 8.12% year-on-year, while the net profit attributable to shareholders was 96 million yuan, down 39.15% year-on-year [1][2]. - The gross margin for Q1 2025 was 20.80%, showing a year-on-year decline of 3.01 percentage points but a quarter-on-quarter increase of 3.25 percentage points [2]. Revenue and Profit Forecast - The company is projected to achieve revenues of 5.472 billion yuan, 6.721 billion yuan, and 8.213 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 527 million yuan, 650 million yuan, and 809 million yuan [5][10]. - The expected earnings per share (EPS) for 2025, 2026, and 2027 are 0.55 yuan, 0.68 yuan, and 0.85 yuan, respectively [5][10]. Cost and Expense Analysis - The report indicates that the company's operating costs for 2024 are projected at 3.515 billion yuan, with a gross margin of 20.28% [10]. - The selling, general, and administrative expenses are expected to be 20 million yuan, 169 million yuan, and 191 million yuan for sales, management, and R&D, respectively, in 2024 [10]. Market Expansion and Capacity Development - The company has initiated the construction of a manufacturing base in Mexico, which is expected to commence production in 2025, and is planning a base in Thailand by the end of 2024 [3]. - The company has secured multiple projects with leading domestic new energy vehicle manufacturers, indicating strong domestic market penetration [3].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a strong potential for growth relative to the benchmark index [4][6]. Core Insights - The company reported a revenue of 4.409 billion yuan for 2024, a year-on-year decrease of 8.79%, and a net profit attributable to shareholders of 416 million yuan, down 41.71% year-on-year [1][4]. - In Q1 2025, the company achieved a revenue of 1.046 billion yuan, a decline of 8.12% year-on-year, while the net profit attributable to shareholders was 96 million yuan, down 39.15% year-on-year [1][2]. - The company is experiencing pressure on its performance but anticipates growth from new projects [2]. Revenue and Profit Analysis - The revenue for Q4 2024 was 1.135 billion yuan, showing a year-on-year decrease of 9.86% but a quarter-on-quarter increase of 0.85% [2]. - The gross margin for Q4 2024 was 17.55%, down 3.31 percentage points year-on-year, while Q1 2025 saw a gross margin of 20.80%, reflecting a recovery trend [2][3]. - The company has a significant customer base, including Tesla, which delivered 336,700 vehicles globally in Q1 2025, a decrease of 12.96% year-on-year [2]. Capacity Expansion and Strategic Initiatives - The company has secured approximately 1.9 billion yuan in orders from major North American electric vehicle manufacturers and is progressing with its overseas capacity expansion, including a base in Mexico expected to commence production in 2025 [3]. - The company is advancing its magnesium alloy technology and has initiated collaborations in the humanoid robot sector, focusing on joint shell and torso structure components [3]. Financial Forecast - The projected revenues for 2025, 2026, and 2027 are 5.472 billion yuan, 6.721 billion yuan, and 8.213 billion yuan, respectively, with corresponding net profits of 527 million yuan, 650 million yuan, and 809 million yuan [5][10]. - The earnings per share (EPS) are expected to be 0.55 yuan in 2025, 0.68 yuan in 2026, and 0.85 yuan in 2027, with price-to-earnings (PE) ratios of 23, 19, and 15, respectively [4][5].

Core Viewpoint - Ningbo Xusheng Group Co., Ltd. reported a solid financial performance for 2024, with a focus on lightweight aluminum alloy technology and expansion into emerging sectors such as energy storage and humanoid robotics [2][3]. Financial Performance - In 2024, the company achieved a total revenue of 4.409 billion RMB and a net profit attributable to shareholders of 416 million RMB [2]. - The company plans to distribute a cash dividend of 3.80 RMB per 10 shares, totaling 355 million RMB [2]. - For Q1 2025, the company reported revenue of 1.046 billion RMB and a net profit of approximately 95.64 million RMB [4]. Business Development - The company has secured approximately 1.9 billion RMB in orders from mainstream electric vehicle platforms in North America and has concentrated on key projects with major domestic new energy manufacturers [2]. - In 2024, revenue from energy storage projects reached about 234 million RMB, representing over a 200% year-on-year growth [3]. - The company is actively developing key products for humanoid robotics, including joint shells and torso components, and has established partnerships with several domestic and international clients [3]. Strategic Expansion - Xusheng Group has established a triangular production network in "China + North America + Southeast Asia," enhancing its dual-track strategy of "technology going global" and "local coexistence" [4]. - The company is focusing on magnesium alloy products, having successfully developed a semi-solid injection molded motor housing and initiated cooperation on magnesium alloy electric drive housing projects with foreign clients [3].