Incident: The company released its 2024 annual report. In 2024, the company achieved revenue of 3.59 billion yuan, -8.2% year on year, realized net profit of 0.42 billion yuan, or -14.4% year on year, realized net profit deducted from non-return mother 0.4 billion yuan, -16.9% year on year; 2024Q4 achieved revenue of 1.1 billion yuan, -5.3% year on year, realized net profit to mother 0.08 billion yuan, net profit of 0.06 percent year on year billion yuan, -41.3% YoY
Reviews:
Terminal fluctuations+fees affect full-year results. The company achieved revenue of 3.59 billion yuan in 2024, -8.2% year over year, realized net profit of 0.42 billion yuan, and realized net profit of 0.4 billion yuan without return to mother, or -16.9% year on year; 2024Q4 achieved revenue of 1.1 billion yuan, or -5.3% year over year, and realized net profit to mother 0.08 billion yuan, -24.1% year over year, net profit of 0.06 billion yuan. In terms of terminals, the company was affected by SAIC Motor's and Tesla's sales pressure in 2024; in terms of expenses, the company was affected by factors such as increased asset depreciation and amortization, accrued asset impairment, and increased partial expenses. The company achieved a comprehensive gross profit margin of 21.08% in 2024, -2.13pct year on year.
The volume of integrated die casting is imminent, and the customer structure continues to be optimized. In terms of integrated die-casting, the company has set up a number of Bühler large-scale integrated die-casting production lines. It is the first parts company to obtain customer project targets and achieve large-scale mass production in the large-scale integrated die-casting field. It achieved mass production and delivery of products in 2023. In 2024, the company's integrated die-casting business received multiple customer orders. After several years of production line investment and business development, the integrated die-casting business is expected to gradually enter a large-scale mass production period starting in the second half of 2025. The integrated die-casting business in 2024 is in a climbing phase of production, and various expenses such as management fees and manufacturing costs for related subsidiaries are high. Subsequent projects can contribute greatly to the company's operating performance after initial production and gradual break-even. Currently, the main customers include NIO Auto, LEAPMOTOR, and Ideal Auto. The company has accumulated rich experience in advanced equipment, product yield, cost control, process design, etc.
Profit forecast: The company is a leading supplier of automotive stamping in China. We continue to be optimistic about the gradual expansion of the company's integrated die-casting field and the gradual optimization of the customer structure. We expect the company's revenue in 2025-2027 to be 4.77/5.68/6.54 billion yuan, and achieve net profit to mother of 0.58/0.7/0.82 billion yuan, corresponding PE 10/9/7 times.
Risk factors: New model sales fall short of expectations; overseas market expansion falls short of expectations; new product development progress falls short of expectations.
