The Zhitong Finance App learned that Haitong Securities released a research report stating that Yu Minshi Group (00425) has an “superior to the market” rating. The estimated net profit for 2024-2026 is 2.18 billion yuan, 2.49 billion yuan, 2.94 billion yuan, and EPS is 1.88 yuan, 2.15 yuan, and 2.53 yuan respectively. Considering the company's global advantages, the reasonable value range is HK$20.21-24.25. A diversified product portfolio and an increasingly balanced customer structure will strongly support the long-term sustainable growth of the company's performance.

Haitong Securities's main views are as follows:

Battery box: Continue to expand penetration and business area footprint.

In 2023, the battery box business of the company and Volkswagen extended from Europe to China, and the battery case business with Volvo expanded from China to Europe. At the same time, it also seized opportunities in the North American market, breaking through the battery case business of Nissan, Strantis, Hyundai Kia and other customers in the North American market for the first time. The battery box production process was also expanded, and the first order for an integrated die-cast battery case for a hybrid model was obtained.

Intelligent products: continuous deepening and achieving many first breakthroughs.

In 2023, the company's intelligent products include electric door systems, front and rear light-emitting masks, light-emitting bumpers, light-emitting grilles, active air intake grilles, and variable spoilers. Customers include Chinese brands, European brands, Japanese brands, and well-known technology companies in the field of cross-border automobiles.

Risk warning: New energy vehicle sales risk, auto parts price reduction risk, raw material price increase risk.