Hangzhou Zhengqiang Corporation Limited

301119.SZ · SHZ

Company research

Hangzhou Zhengqiang Corporation Limited (301119.SZ) is a China-based manufacturer and distributor of automotive transmission components, specializing in the research, development, production, and sale of cross shaft universal joint assemblies, yokes, spiders, tri-pod inner kits, and related parts used in automobile steering and transmission systems. Founded in 1997 and headquartered in Xiaoshan District, Hangzhou, Zhejiang Province, the company serves both OEM and aftermarket customers across passenger cars, buses, light vehicles, heavy-duty trucks, and engineering machinery, with an annual production capacity exceeding 29 million units. Listed on the Shenzhen Stock Exchange GEM board in November 2021, Hangzhou Zhengqiang operates internationally with key export markets including the United States, Japan, Brazil, and India, employing approximately 639 staff. The company is further expanding its global footprint through a planned smart manufacturing facility in Thailand, reinforcing its strategic presence in the ASEAN market and global supply chain.

Research reports

Futubull (Futu Securities Research) · July 21, 2025正强股份(301119)：万向节领域小巨人潜力可期

Initiating coverage on Hangzhou Zhengqiang Transmission as a “small giant” in universal joints, the report highlights steady revenue and net income growth since listing, structurally strong margins around 30%, deep relationships with major global auto‑parts customers, and ongoing capacity‑expansion plus “new quality productivity” initiatives to build a second growth curve. It forecasts 2025–2027 net income of 1.14/1.27/1.44 billion CNY with corresponding P/E of 39/35/31, assigns a 60.2 CNY target price based on a 55x 2025 P/E and initiates with a buy rating, while flagging downside risks from weaker‑than‑expected downstream demand and potential shortfalls in profits versus forecasts.