Core Viewpoint - The report on Haomai Technology (002595) highlights its diversified business lines, including tire molds, gas turbines, and machine tools, which are expected to drive growth and solidify its market position, with an initial recommendation of "Buy" [1] Company Overview - Haomai Technology is a global leader in tire molds, actively expanding into precision manufacturing with three main business segments: tire molds, large mechanical components, and CNC machine tools [2] - The company is projected to achieve a revenue of 8.813 billion yuan in 2024, representing a year-over-year increase of 22.99%, and a net profit of 2.011 billion yuan, up 24.77%, both reaching historical highs [2] - From 2019 to 2024, the compound annual growth rates (CAGR) for revenue and net profit are expected to be 14.97% and 18.44%, respectively [2] - The gross margin is forecasted at 34.30% and net margin at 22.85% for 2024, indicating a continued recovery in profitability [2] Tire Mold Business - The tire mold segment is the core business of Haomai Technology, contributing stable cash flow with a projected revenue of 4.65 billion yuan in 2024, accounting for over 50% of total revenue [3] - The company holds a global market share of approximately 34.41% in the tire mold sector, showcasing its leading position [3] - The business benefits from strong customer loyalty and is expected to continue growing due to the accelerated tire replacement cycle driven by the electric vehicle market [3] Large Component Business - The gas turbine segment is a key growth area, projected to account for about 30% of the large component business in 2024 [4] - Haomai Technology has become a core supplier of gas turbine cylinder bodies for GE, benefiting from the expansion of overseas gas and electricity markets and the rising demand for data centers driven by AI [4] - The wind power casting segment is expected to contribute significantly, with around 60% of the large component revenue in 2024, supported by a favorable long-term trend in the wind power industry [4] CNC Machine Tool Business - The CNC machine tool segment is emerging as a third growth engine, with projected revenue of 399 million yuan in 2024 [5] - The company focuses on high-end products such as five-axis machining centers, leveraging its advantages in process feedback and rapid iteration [5] - The business is currently in a phase of validation and scaling, with potential for significant future contributions to overall performance [5] Profit Forecast, Valuation, and Rating - Revenue forecasts for Haomai Technology are projected to reach 10.187 billion yuan in 2025, 11.653 billion yuan in 2026, and 13.294 billion yuan in 2027, with year-over-year growth rates of 15.58%, 14.39%, and 14.08% respectively [6] - Net profit is expected to be 2.321 billion yuan in 2025, 2.686 billion yuan in 2026, and 3.097 billion yuan in 2027, with corresponding growth rates of 15.39%, 15.71%, and 15.32% [6] - The initial coverage rating for the stock is "Recommended" [6]

Group 1: Financial Performance - In 2024, the tire mold business achieved revenue of 4.651 billion CNY, a year-on-year increase of 22.73%, with a gross margin of 39.59%, down by 3.10 percentage points [2] - The large component machinery products generated revenue of 3.332 billion CNY in 2024, reflecting a growth of 20.31% [2] - The machine tool business reported revenue of 399 million CNY, marking a significant increase of 29.30% year-on-year [3] Group 2: Business Operations - The company’s high-end casting project, with a capacity of 65,000 tons, is expected to commence production around May or June 2025, focusing on wind power components and machine tool parts [3] - The company has established a global production service system with subsidiaries in the USA, Thailand, Hungary, India, Brazil, Vietnam, Mexico, and Cambodia, enhancing its risk resistance and service capabilities [4][5] Group 3: Product Development and Market Strategy - The electric heating vulcanizing machine has shown significant advantages over traditional methods and is expected to have good development potential both domestically and internationally [4] - The company employs a systematic pricing mechanism for tire molds, considering various factors such as specifications, processing difficulty, and order cycles [4] - The machine tool business plans to adopt a combination of direct sales and distribution channels, with a current focus on direct sales [5] Group 4: Future Outlook - The global demand for gas turbines is expected to remain strong in the coming years, with the company currently operating at full capacity [3] - There are no current plans for mergers or asset injections, but any future arrangements will be disclosed as per regulations [5]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][17] Core Views - The company achieved a revenue of 8.813 billion yuan in 2024, representing a year-on-year growth of 22.99%, with a net profit attributable to shareholders of 2.011 billion yuan, up 24.77% year-on-year [1][3][11] - The three main business segments, tire molds, large component machinery products, and machine tools, all showed strong performance, with significant growth in the fourth quarter [1][2] - The company is a global leader in tire mold production, with a continuous increase in market share and a positive outlook for the large component and machine tool segments due to ongoing demand [3][4] Revenue and Profitability - Revenue from the tire equipment, large component machinery, and CNC machine tool segments was 4.917 billion, 3.332 billion, and 399 million yuan respectively, with year-on-year growth rates of 24.39%, 20.31%, and 29.30% [2] - The gross margin for 2024 was 34.30%, with a slight decrease attributed to changes in product mix and increased personnel costs in the tire equipment segment [1][3] - The net profit margin for 2024 was 22.85%, reflecting stable profitability despite slight fluctuations in gross margin [1][3] Financial Forecasts - The company has adjusted its profit forecasts, expecting net profits of 2.358 billion, 2.757 billion, and 3.179 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 20, 17, and 15 [3][4] - The projected revenue growth rates for the next few years are 20.1% for 2025, 18.5% for 2026, and 16.7% for 2027 [4][3] Market Position and Strategy - The company is expanding its international production capacity, with a new factory in Mexico set to open in April 2024, which is expected to enhance its competitive position [2] - A new wholly-owned subsidiary has been established to focus on the production of electric heating vulcanizing machines, which are anticipated to have significant energy-saving advantages over traditional methods [2][3]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][17] Core Views - The company achieved a revenue of 8.813 billion yuan in 2024, representing a year-on-year growth of 22.99%, with a net profit attributable to shareholders of 2.011 billion yuan, up 24.77% year-on-year [1][3][11] - The three main business segments, tire molds, large component machinery products, and machine tools, all showed strong performance, contributing to the overall growth [1][2][3] - The company has established a wholly-owned subsidiary focused on the production of electric heating vulcanizing machines, which are expected to have significant development potential [2][3] Revenue and Profitability - The revenue for the tire equipment, large component machinery, and CNC machine tool segments were 4.917 billion, 3.332 billion, and 399 million yuan respectively, with year-on-year growth rates of 24.39%, 20.31%, and 29.30% [2] - The gross margin for 2024 was 34.30%, with a slight decrease of 0.35 percentage points year-on-year, while the net profit margin was 22.85%, an increase of 0.36 percentage points [1][3] Financial Forecasts - The company is projected to achieve net profits of 2.358 billion, 2.757 billion, and 3.179 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 20, 17, and 15 [3][4] - The expected revenue growth rates for the next few years are 20.1% in 2025, 18.5% in 2026, and 16.7% in 2027 [4][15] Market Position - The company is recognized as a global leader in tire mold production, with a continuously increasing market share in this segment [3][4] - The demand for large components is benefiting from trends in artificial intelligence, while the machine tool business is maintaining a high growth rate [3][4]

Investment Rating - The report gives a "Recommended" rating for the company, indicating a forecasted increase of over 10% relative to the benchmark index in the next 12 months [7][14]. Core Insights - The company reported a revenue of 8.81 billion RMB for 2024, a year-on-year increase of 23%, and a net profit of 2.01 billion RMB, up 24.8% year-on-year, exceeding expectations [4]. - In Q4 2024, the company achieved a revenue of 2.45 billion RMB, reflecting a year-on-year growth of 31.4%, with a net profit of 590 million RMB, up 34.1% year-on-year, indicating a significant acceleration in profit growth [4]. - The tire mold industry is experiencing sustained demand due to the growth of the automotive tire sector, particularly from domestic tire companies increasing their global competitiveness [5]. - The company’s revenue from molds reached 4.65 billion RMB in 2024, a 23% increase year-on-year, with a gross margin of 39.6% [5]. - The gas turbine market is also showing strong demand, with global orders exceeding 50 GW, a 15% increase year-on-year, and the wind power sector seeing a 25% increase in new installations [6]. Financial Forecast - The company is expected to achieve revenues of 10.38 billion RMB, 11.56 billion RMB, and 12.74 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 2.33 billion RMB, 2.60 billion RMB, and 2.94 billion RMB [9][14]. - The projected PE ratios for the years 2025, 2026, and 2027 are 19.4, 17.4, and 15.4 respectively [7][14]. - The company’s gross margin is expected to remain stable around 34% over the forecast period [12].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 8.813 billion yuan for 2024, representing a year-on-year increase of 22.99%, and a net profit attributable to shareholders of 2.011 billion yuan, up 24.77% year-on-year, exceeding expectations [4][5] - In Q4 2024, the company achieved a record revenue of 2.448 billion yuan, with a year-on-year growth of 31.35%, and a net profit of 594 million yuan, reflecting a 34.1% increase year-on-year [4][5] - The company’s gross margin for 2024 was 34.3%, a slight decrease of 0.35 percentage points from 2023, while the net margin improved by 0.36 percentage points to 22.85% [5] Revenue Breakdown - The tire mold segment accounted for 52.78% of total revenue in 2024, generating 4.651 billion yuan, with a year-on-year growth of 22.73% and a gross margin of 39.59%, down 3.1 percentage points [6] - The large component machinery segment contributed 37.81% to revenue, achieving 3.332 billion yuan, a 20.31% increase year-on-year, with a gross margin of 25.67%, up 2.66 percentage points [6] - The CNC machine tool segment, which is a key growth area, represented 4.53% of revenue, generating 399 million yuan, a 29.3% increase year-on-year [6] Financial Forecasts - Revenue forecasts for 2025-2027 are adjusted to 10.105 billion yuan, 11.498 billion yuan, and 13.046 billion yuan respectively, with net profits projected at 2.320 billion yuan, 2.651 billion yuan, and 3.037 billion yuan [8] - The current stock price corresponds to a PE ratio of 19.5 for 2025, 17 for 2026, and 14.9 for 2027 [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 8.813 billion yuan for 2024, representing a year-on-year increase of 22.99%, and a net profit attributable to shareholders of 2.011 billion yuan, up 24.77% year-on-year, exceeding expectations [4][8] - In Q4 2024, the company achieved a record revenue of 2.448 billion yuan, with a year-on-year growth of 31.35%, and a net profit of 594 million yuan, reflecting a 34.1% increase year-on-year [4][5] - The company’s gross margin for 2024 was 34.3%, a slight decrease of 0.35 percentage points from 2023, while the net margin improved by 0.36 percentage points to 22.85% [5] Revenue Breakdown - The tire mold segment accounted for 52.78% of total revenue in 2024, generating 4.651 billion yuan, with a year-on-year growth of 22.73% and a gross margin of 39.59%, down 3.1 percentage points [6] - The large component machinery segment contributed 37.81% to revenue, achieving 3.332 billion yuan, a 20.31% increase year-on-year, with a gross margin of 25.67%, up 2.66 percentage points [6] - The CNC machine tool segment, which is a key growth area, represented 4.53% of revenue, generating 399 million yuan, a 29.3% increase year-on-year [6] Financial Forecasts - Revenue forecasts for 2025-2027 are adjusted to 10.105 billion yuan, 11.498 billion yuan, and 13.046 billion yuan respectively, with net profits projected at 2.320 billion yuan, 2.651 billion yuan, and 3.037 billion yuan [8][12] - The company’s current stock price corresponds to a PE ratio of 19.5 for 2025, 17.0 for 2026, and 14.9 for 2027 [8]

Investment Rating - The report maintains a "Buy" rating for the company [2][4] Core Views - The company's performance in 2024 is in line with expectations, with revenue growth of 22.99% year-on-year, reaching 88.13 billion yuan, and net profit attributable to shareholders of 20.11 billion yuan, up 24.77% year-on-year [2][4] - All three major business segments (tire molds, large component machinery, and CNC machine tools) have shown significant growth, contributing to the overall revenue increase [2][4] - The company has expanded its international production capacity, with new factories in Thailand and Mexico, enhancing its global service capabilities [4] Revenue and Profitability - In 2024, the tire mold business generated revenue of 46.51 billion yuan, up 22.73% year-on-year; large component machinery products achieved 33.32 billion yuan, up 20.31%; and CNC machine tools reached 3.99 billion yuan, up 29.30% [2] - The gross profit margin for 2024 is 34.30%, a slight decrease of 0.35 percentage points year-on-year, while the net profit margin increased by 0.36 percentage points to 22.85% [3] - The company received 103 million yuan in government subsidies, which positively impacted the net profit margin [3] Financial Forecasts - The report projects revenue for 2025 to reach 104.04 billion yuan, with a net profit of 23.35 billion yuan, and for 2026, revenue is expected to be 122.92 billion yuan with a net profit of 27.63 billion yuan [4][11] - The estimated earnings per share (EPS) for 2024 is 2.51 yuan, with projections of 2.92 yuan for 2025 and 3.45 yuan for 2026 [4][11] Market Position and Growth Drivers - The company is benefiting from the growth in the global gas turbine market and the recovery of the wind power industry, which is expected to continue driving performance [4] - The CNC machine tool segment is developing a third growth curve with new five-axis products and a planned machine tool laboratory for technology development [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in 2024 is in line with expectations, with revenue growth of 22.99% year-on-year, reaching 88.13 billion yuan, and net profit attributable to shareholders of 20.11 billion yuan, up 24.77% year-on-year [2] - All three major business segments (tire molds, large component machinery, and CNC machine tools) have shown significant growth, contributing to the overall revenue increase [2] - The company has expanded its international production capacity, with new factories in Thailand and Mexico, enhancing its global service capabilities [4] - The CNC machine tool segment is expected to open a third growth curve with new product launches and investments in a machine tool laboratory [4] - Profitability has slightly improved, with a net profit margin of 22.85%, despite a small decline in gross margin to 34.30% [3] Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 88.13 billion yuan, a year-on-year increase of 22.99%, and a net profit of 20.11 billion yuan, up 24.77% [2] - The revenue from the tire mold business was 46.51 billion yuan, up 22.73%, while large component machinery generated 33.32 billion yuan, up 20.31%, and CNC machine tools reached 3.99 billion yuan, up 29.30% [2] - For Q4 2024, the company reported revenue of 24.48 billion yuan, a 31.35% increase year-on-year, and a net profit of 5.94 billion yuan, up 34.10% [2] Profitability and Cost Management - The gross margin for 2024 was 34.30%, a slight decrease of 0.35 percentage points year-on-year, while the net profit margin improved by 0.36 percentage points [3] - The increase in management and R&D expenses was noted, attributed to a rise in personnel and salary costs, as well as increased investment in R&D [3] Business Expansion and Growth Drivers - The tire mold business is expanding internationally, with new factories enhancing service capabilities [4] - The large component machinery segment benefits from a growing gas turbine market and recovering wind power orders [4] - The CNC machine tool segment is focusing on high-precision products and has plans for a new laboratory to support product development [4] Earnings Forecast and Valuation - The forecast for net profit attributable to shareholders has been raised for 2025 and 2026 to 23.35 billion yuan and 27.63 billion yuan, respectively, with an expected net profit of 31.90 billion yuan in 2027 [4] - The current stock price corresponds to dynamic P/E ratios of 18, 15, and 13 for the years 2025, 2026, and 2027, respectively [4]

Financial Performance - In 2024, the company achieved operating revenue of 8.813 billion CNY, a year-on-year increase of 22.99% [2] - The net profit attributable to shareholders was 2.011 billion CNY, up 24.77% year-on-year [2] - The gross margin for tire mold business was 39.59%, a decrease of 3.10 percentage points compared to the previous year [2] - Revenue from large component machinery products reached 3.332 billion CNY, with a gross margin of 25.67%, an increase of 2.66 percentage points [2] Business Segments - Tire mold business saw a revenue increase of 46.51% year-on-year, with strong domestic sales growth [2] - CNC machine tool sales generated 399 million CNY, reflecting a 29.30% year-on-year growth [3] - The company’s high-end casting project is expected to start production in May or June 2025, focusing on wind power and gas turbine components [6] Workforce and Personnel - As of December 31, 2024, the total number of employees was 14,804, an increase of 2,275 from the previous year [4] - The tire mold business accounted for over 9,000 employees, while large component machinery and machine tool divisions had approximately 3,000 and 1,700 employees, respectively [4] - Personnel increases are anticipated in 2025, particularly in the tire mold and large component machinery sectors [4] Market Outlook - The demand for gas turbines is expected to remain strong due to rising global electricity needs [6] - The wind power component market is recovering, with both wind and gas turbine businesses projected to grow in 2024 [7] - The company’s electric heating vulcanizing machine is expected to see significant growth, with a projected doubling of overall business output by 2025 [8]