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The wholly-owned subsidiary of Lizhong Sitong Light Alloy Group Co., Ltd. has obtained the qualification certification of heat-free alloy materials for new energy vehicle enterprises, which is expected to improve performance and market share.LuckyphoenixmegawaysThe production capacity of aluminum plate and lithium material plate is expanded, and the business income is expected to reach 286 346 / 41.8 billion yuan from 2024 to 2026, with a net profit of 10%.Luckyphoenixmegaways. 16/11Luckyphoenixmegaways.37 / 1.323 billion yuan, maintaining the "buy" rating. Risks include capacity expansion, industry competition and substandard product development.

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[Lizhong Sitong Light Alloy subsidiary wins head New Energy vehicle Enterprise qualification Certification] Tianjin Xinlizhong Alloy Group Co., Ltd., a subsidiary of Lizhong Sitong Light Alloy Group, has obtained the qualification certification of heat-free alloy materials from a head new energy vehicle company. It is expected to significantly improve the company's future performance and market share. The company's heat-free alloy materials have been supplied in small batches for high-end brand pure electric models battery pack bracket structures. At present, we are actively promoting the promotion of a variety of heat-free alloy materials for large-scale structural parts to meet the diversified needs of customers. The company has launched commercial negotiations with a number of new energy vehicle companies and large die-casting factories on integrated die-casting heat-free alloy materials, some customer materials and parts verification work has been completed, large-scale mass production plan is about to start.

[a number of designated projects contribute to steady growth in sales] the company has recently announced the bonus prospects for a number of designated projects, as followsLuckyphoenixmegawaysOn February 2, 2024, Xintai Wheel subsidiary received the aluminum alloy wheel project of the international carmaker, which is expected to be mass produced in September 2025 with a cycle of four years, with cumulative sales of about 1.94 billion yuan. On February 6, 2024, Tianjin Lizi Company received an aluminum alloy wheel project of an international head car company, which is expected to be mass-produced in mid-2025 with a cycle of three years, with cumulative sales of about 250 million yuan. On March 12, 2024, Xintai Wheel subsidiary received the notification of the high-end forged aluminum alloy wheel project of a large global automobile enterprise group, which is expected to start in May 2025, with a cycle of 8 years, with a total sales of about 750 million yuan. -on April 8, 2024, the subsidiary of Baoding Lizhong Wheel Manufacturing Co., Ltd. received the project of spinning aluminum alloy wheels for high-end intelligent electric vehicles and international well-known automobile manufacturers. Customer 1 project starts in December 2024, with a cycle of 3 years, and expected sales of about 15 million yuan; customer 2 project starts in March 2026, with a cycle of 6 years, and expected sales of about 700 million yuan. On May 21, 2024, the subsidiary of Baoding Lizhong Wheel Manufacturing Co., Ltd. received the aluminum alloy wheel project from an international well-known automobile manufacturer, which is expected to be mass produced in June 2026 with a period of 6 years, with expected sales of about 377 million yuan.

[profit forecast shows optimistic growth prospects] with the capacity expansion, efficiency improvement and wide adoption of heat-free alloys in the company's aluminum and lithium materials plates, the company's operating income from 2024 to 2026 is expected to reach 28.601 billion, 34.634 billion and 41.839 billion yuan. The corresponding return net profit is expected to be 1.016 billion, 1.137 billion and 1.323 billion yuan respectively, and the price-to-earnings ratio is 12.54,11.20,9.63 times respectively. As a leading supplier of aluminum alloy, the company's valuation is expected to continue to rise as profits grow, maintaining a "buy" rating.

[risk tips should not be ignored] it should be noted that if the company's capacity expansion does not meet expectations, intensified competition in the aluminum alloy industry or product research and development facilities do not meet expectations, it may affect the company's performance.