The company is a leading enterprise in the domestic gasoline engine industry, with a resonant layout for commercial vehicles. The product range continues to expand, covering commercial passenger and new energy vehicles. Dongan Power has the ability to independently develop efficient engines and automatic transmissions, forming an integrated advantage of new energy power transmission systems. Its products cover the light commercial vehicle, new energy range extender and hybrid vehicles, middle and high-end passenger vehicles, and pickup trucks. The company has maintained sales of over 0.6 million units over the years, ranking in the leading position in the domestic independent gasoline engine industry. Commercial customers all have a layout and continue to break through high-quality customers. Currently, the main supporting customers include Changan Automobile, Foton Motors, Dongfeng Co., Ltd., Changan Crossing, JAC, Hezhong Automobile, Chery Automobile, Shandong Wuzheng, etc., and currently supplies products to 56 production bases of 31 domestic and foreign automobile groups.

As products continue to be promoted, range extenders are expected to continue to gain strength. The product range continues to expand, and the range extender engine is already equipped with Xiaopeng Flying Car. The high-efficiency range-extension engine is equipped with Xiaopeng Huitian Flying Car, and mass production has begun. This product provides mobile overcharging for the only car in the world that can be equipped with an aircraft, and will become a new starting point for the company's market development. In September 2024, the company announced the launch of mass production of the world's first split flying vehicle project equipped with Dongan Power engines. Range extenders are expected to be used by many car companies in the future: as the first domestic company to mass-produce range extenders, the company already has a technical and customer base. At present, it has cooperated with many new domestic car builders. According to the car manufacturer's mass production plan, it is expected that large-scale extended-range mass-produced models will be launched in the fourth quarter of next year.

New energy vehicles are on the rise, and customers in various fields are fully covered. The company has many new designated customers for new energy products. According to the customer's product launch plan, large-scale extended-range mass-produced models will be launched from the second half of 2025 to the beginning of 2026. New market development project lifecycle planning sales reached 4.8 million units, of which new energy market project lifecycle planning sales reached 3.1 million units. Actively explore the market and fully cover customers in various fields. In the first half of 2024, the company has a life cycle plan of 4.8 million units for new projects, including 11 passenger vehicles, 34 commercial vehicles, and 8 special products. Major customers include Changan Jiaoyuan and Changan Kaicheng. A total of 28 projects have been set up, including 53 projects, an increase of 83% over the previous year. The main customers include Changan SUVs and sedans. Seventeen new projects have been set up in the new energy market, an increase of 240% over the previous year. Currently, major customers include Dongfeng Rantu Free, Hezhong Auto, and Zero Sports.

Profit forecast: The company is expected to achieve revenue of 5.172, 5.248, and 5.332 billion yuan in 2024-2026, or -4.03%, +1.47%, and +1.60%; net profit to mother in 2024-2026 will be 0.003, 0.012, 0.018 billion yuan. The company is in a leading position in the domestic gasoline engine industry and has a deep accumulation in engine and transmission products. At the same time, it is promoting new products and continuing to develop range extender products. The company is the first domestic enterprise to achieve mass production of range extenders. Currently, it has cooperated with many new domestic car builders. It is expected to use many new car companies in the future, giving the company a “recommended” rating

Risk warning: competition in the passenger car industry intensifies, sales fall short of expectations; promotion of new products falls short of expectations; risk of rising raw material costs and prices; risk of uncertain demand, etc.