After years of “double adjustment” strategy, the company has initially formed a two-pillar strategic pattern for consumer electronics precision structural parts and modules and new energy components and connector products. Looking forward to the future, we are optimistic about: 1) Continuing to deepen the consumer electronics business, bind high-quality customers such as Apple and Samsung, and titanium alloy middle frame+XR structural parts help grow performance. 2) Extend the layout of new energy components. Along with the release of production capacity and the volume of new orders, the continuous increase in capacity utilization is expected to drive profitability restoration. Considering that the company's various businesses are expected to usher in a harvest period and open up a new round of growth space, we expect the company's net profit to be 7.80, 8.29, and 1,039 million yuan respectively in 2024-26. Among them, 24Q1 received an investment income of about 177 million yuan (30% equity settlement of Guangdong Tianji Intelligence). First coverage, giving a buy rating.

Changying Precision: A leading manufacturer of precision electronic components in China. The company was founded in 2001 and listed on the Shenzhen Stock Exchange in 2010. The company started with a smart terminal component business and bound high-quality customers such as Apple and Samsung. Since 2015, the company has grasped the trend of the NEV industry, rapidly deployed the NEV sector, and has successively broken through leading domestic and foreign downstream customers such as Tesla and the Ningde Era. At present, the company has initially formed a two-pillar strategic pattern for consumer electronics precision structural parts and modules and new energy components and connector products.

Highlight 1: The new titanium alloy+XR business provides new momentum for performance growth. 1) Apple side: The company's laptop project share continues to increase, and the shipment of superimposed MR structural parts is expected to bring new growth in performance; 2) Android:

Domestic demand for Android is steadily picking up, and the superposition of Samsung's titanium alloy cases is expected to contribute new growth momentum.

Highlight 2: Join hands with leading customers to release new energy production capacity and increase performance. In order to serve downstream customers nearby, the company has completed a multi-regional layout, and has built supporting projects in Ningde, Liyang, Yibin and other places, and is now entering the mass production stage one after another. Along with the release of the company's new production capacity and the continuous introduction of customer orders such as superimposed C/T, the company's production capacity utilization rate is expected to continue to increase, and profitability is expected to improve quarterly due to scale effects.

Profit forecast: We expect the company's revenue for 2024-26 to be 167.32, 200.61, and 23.558 billion yuan; net profit to mother will be 7.80, 8.29, and 1,039 million yuan. Among them, 24Q1 received an investment income of about 177 million yuan (30% equity settlement of Guangdong Tianji Intelligence). First coverage, giving a buy rating.

Risk warning: Downstream demand falls short of expectations, raw material price fluctuations, and risk of exchange rate fluctuations.