LSKJ(300680)2025-04-22 04:46Summary of Rongsheng Technology Conference Call Company Overview - Rongsheng Technology reported a revenue of approximately 2.32 billion yuan for 2024, with a basic earnings per share of about 1 yuan. Total assets and net assets showed steady growth. The three main business segments, EGR, motor cores, and precision manufacturing, all achieved significant growth, with the 1+2 segment and new energy business growing by about 30%, and precision components increasing by approximately 13% [1][2][5]. Key Business Segments Performance - EGR and Natural Gas Nozzle Business: - Revenue from the natural gas nozzle business was around 1 billion yuan in 2024, with the remainder coming from the EGR system [6]. - The EGR business saw a revenue target of 1 billion yuan for 2025, supported by stable natural gas market conditions and strong demand from commercial vehicles [12][13]. - Motor Core Segment: - The largest customer for the motor core segment is Tesla, generating nearly 400 million yuan in revenue, followed by United Microelectronics at about 300 million yuan, and others like Seres and Geely contributing significantly [17][20]. - By the end of 2024, the production capacity for motor cores reached 3.43 million sets, with actual sales at 2.25 million sets. The expected production capacity for 2025 is around 5 million sets, with actual shipments projected to exceed 3 million sets [20]. - Precision Components: - The precision components business grew by 43% in 2024, driven by components for the Longsheng system and motor core-related products [21]. New Business Developments - Rongsheng Technology is actively expanding into new business areas, particularly in aerospace satellites, low-altitude drones, and humanoid robots. The acquisition of Weian Intelligent is expected to enhance the humanoid robot industry chain, with significant advancements anticipated in 2025 [1][3][5]. - The Chongqing Rongsheng Maomao project has commenced production with an annual capacity of 200,000 semi-finished products, corresponding to nearly 300 million yuan in revenue. Plans are in place to increase production lines in the second half of 2025 to meet Seres' demand [4][5]. Customer Structure and Market Position - In 2024, the largest customer was BYD, contributing nearly 300 million yuan, followed by Bosch at about 100 million yuan, and Chery with revenues of approximately 40-50 million yuan [2][7][10]. - Rongsheng maintains a 50% share in BYD's supply chain, with expectations of revenue growth aligned with BYD's increasing sales volume [10]. Financial Performance and Projections - The company expects to maintain a rapid growth trajectory over the next three years, supported by its existing business segments and emerging fields like humanoid robotics and aerospace [5][30]. - The net profit margin for Rongsheng's new energy subsidiary was approximately 6.08% in 2024, with expectations for improvement as production capacity and sales increase [18][30]. Challenges and Considerations - Despite an increase in average prices, the gross margin has declined due to changes in product mix, with lower-margin products from clients like Chery affecting overall profitability [11]. - The company is optimistic about the natural gas nozzle market, anticipating significant growth driven by demand from commercial vehicles and new model platforms from clients like BYD and Chery [13][30]. Conclusion - Rongsheng Technology is positioned for substantial growth, leveraging its established business segments while exploring new opportunities in high-potential areas. The company's strategic initiatives and customer relationships are expected to drive future performance and profitability [31].