Wuxi Zhenhua(605319) 申万宏源·2025-01-22 05:59Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation of performance that exceeds the market by more than 20% over the next six months [6]. Core Insights - The company is projected to achieve a net profit attributable to shareholders of 3.80 to 4.16 billion yuan in 2024, representing a year-on-year growth of 37% to 50% [4]. - The Q4 performance is expected to show significant growth, with a projected net profit of 1.30 to 1.66 billion yuan, reflecting a year-on-year increase of 17% to 50% and a quarter-on-quarter increase of 41% to 80% [6]. - The company benefits from a favorable shift in customer structure due to the transition to new energy vehicles, with significant sales increases from major clients like SAIC, Tesla, and Xiaomi [6]. Financial Data and Profit Forecast - Total revenue is expected to grow from 2,317 million yuan in 2023 to 3,721 million yuan in 2025, with a compound annual growth rate (CAGR) of approximately 40.4% [5]. - The net profit attributable to shareholders is forecasted to increase from 277 million yuan in 2023 to 514 million yuan in 2025, indicating a CAGR of about 30% [5]. - The company's gross margin is projected to remain stable, with slight fluctuations, maintaining around 26% in the coming years [5]. Performance Comparison - The company's stock price has shown a significant increase compared to the market, with a closing price of 25.33 yuan as of January 21, 2025, and a market capitalization of 5,413 million yuan [1]. - The stock has experienced a price range of 26.00 yuan at its highest and 14.46 yuan at its lowest over the past year, indicating volatility but also potential for growth [1].