Investment Rating - The investment rating for the company is "Buy" [6] Core Insights - The company has achieved significant growth in the passenger car seat segment, with sales increasing by 64% and average selling price (ASP) rising by 36% in 2024. It has secured a contract with a leading domestic new energy vehicle manufacturer for seat assembly, expected to generate approximately 1.7 billion in revenue over three years [1] - The company has also received dual certification from EASA and FAA for its aircraft seats, indicating strong international compliance and demand. It has established deep collaborations with key players in the low-altitude economy sector [2] - The company's net profit attributable to shareholders for the first half of 2025 is projected to grow by 48%, although the non-recurring profit has faced pressure [3] - Revenue forecasts for 2025-2027 are set at 2.83 billion, 3.55 billion, and 4.22 billion respectively, with corresponding net profits of 607 million, 1.07 billion, and 1.28 billion, reflecting growth rates of 76% and 19% [4] Summary by Sections Passenger Car Seats - The company has achieved a complete seat industry chain and has successfully developed core components in-house, including seat frames and key parts like sliders and pumps [1] - The company is set to begin mass production of a new seat assembly project in June 2026, with an estimated total of 540,000 vehicles over three years [1] Aircraft Seats - The overseas subsidiary has received EASA and FAA certifications, and has secured multiple orders for single-aisle business class seats [2] - The company is actively involved in the eVTOL seat development and has established partnerships with leading low-altitude industry players [2] Financial Performance - The company reported a significant increase in net profit for the first half of 2025, with a 47.55% year-on-year growth, although the non-recurring profit decreased slightly [3] - Revenue projections indicate a strong growth trajectory, with expected increases in both revenue and net profit over the next few years [4]

Core Insights - In 2024, Tiancheng Control (603085.SH) reported a significant revenue growth of 56.27%, reaching 2.23 billion yuan, driven primarily by a 122.79% increase in passenger vehicle seat revenue, which became the main growth engine for the company [1][2] - Despite a net loss of 16.48 million yuan due to increased R&D investments and currency fluctuations, the company laid a solid foundation for profit improvement in 2025, with Q1 2025 showing a revenue increase of 46.74% and a net profit of 21 million yuan, marking a turnaround [1][2] - The company is positioned as a hidden champion in the domestic automotive seat sector, leveraging a "vertical integration + horizontal collaboration" development model to build a comprehensive industrial layout across various segments [1][3] Passenger Vehicle Business - In 2024, the passenger vehicle seat segment accounted for 50.42% of total revenue, surpassing the engineering and commercial vehicle segments for the first time, with revenue reaching 1.05 billion yuan [2][3] - The growth in this segment is attributed to successful project launches and effective capacity release, supported by multiple new project approvals that ensure ongoing growth [2][3] - The passenger vehicle seat revenue has increased nearly tenfold from 2018, reflecting the company's ability to capitalize on opportunities in the new energy vehicle market [3] Engineering and Aviation Business - The engineering machinery and commercial vehicle seat segments generated 718 million yuan in revenue, a 5.89% increase, benefiting from industry recovery and improved client acquisition [4] - The aviation seat segment also showed promise, with a 52.89% revenue growth as the aviation industry gradually recovers, supported by new orders from various airlines [4] - The company is focusing on product development tailored to international markets, enhancing its export market share [4] Future Strategy - The company is expanding its production base for passenger vehicle seats in various locations, including Wuhan and Chuzhou, and is investing in local partnerships to better serve regional clients [5] - International expansion is a priority, with plans to establish subsidiaries and production bases in Southeast Asia to support domestic clients' international strategies [5] - The company is entering the emerging low-altitude economy sector, particularly in eVTOL (electric vertical takeoff and landing) aircraft, leveraging its R&D capabilities and certification experience [5] Market Position - Tiancheng Control has established strong partnerships with major automotive manufacturers, enhancing its market presence and reputation [6] - The company aims to continue its growth trajectory by adhering to its mission of providing comfortable and safe seating solutions through technological innovation [6]