Investment Rating - The report maintains a "Buy" rating for the company [3][11]. Core Insights - The company, Sanxiang Technology, reported a revenue of 832 million yuan for 2023, representing a year-on-year growth of 14.78%. This growth is attributed to increased production projects from main engine customers, growth in after-sales orders, and enhanced product development for air conditioning and fuel pipe customers [3]. - The net profit attributable to shareholders reached 84 million yuan, a year-on-year increase of 29.86%, primarily due to non-operating income from tax credits in the U.S. [3]. - The company’s earnings per share (EPS) for 2023 was 0.86 yuan, reflecting a growth of 30.30% year-on-year [4]. Financial Performance - The total assets of the company increased to 1.211 billion yuan, a growth of 10.94% year-on-year, mainly due to increased retained earnings from profits [4]. - The equity attributable to shareholders rose to 683 million yuan, with a year-on-year growth of 11.93% [4]. - The company’s revenue projections for 2023-2025 are 840 million yuan, 970 million yuan, and 1.12 billion yuan, with respective year-on-year growth rates of 15.7%, 15.4%, and 15.4% [11]. Market Dynamics - The after-sales market for automotive hoses shows significant growth potential, with the automotive hose market in China valued at 209 billion yuan in 2021, and the after-sales segment estimated at around 1 billion yuan [6]. - The company has established strong relationships with major automotive manufacturers and aftermarket clients, positioning itself well for sustained growth [10]. - The gross margin for the after-sales market is significantly higher at 46.5% compared to 21.6% for the main engine market, indicating a strategic advantage [7][10]. Profitability Metrics - The company’s net profit margin is projected to improve from 9.2% in 2022 to 11.8% by 2025, reflecting enhanced operational efficiency [15]. - The return on equity (ROE) is expected to increase from 10.5% in 2022 to 13.6% in 2025, indicating improved profitability [15].
公司动态研究报告：售后市场韧性显著，穿越周期有望持续增长