FJGF(SZ:002662) East Money Securities·2024-06-17 08:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [5]. Core Views - The company is undergoing a significant equity optimization with the second-largest shareholder, Germany's Weikaw, transferring its entire 11.62% stake at a price of 2.81 CNY per share, which is only about 7% below the current market price of 3.00 CNY [2][3]. - The company has shown strong financial performance, with Q1 2024 revenue reaching 832 million CNY, a year-on-year increase of 7.9%, and a net profit of 110 million CNY, up 82% compared to the previous year [3]. - The company is a leading player in the automotive exterior and surface treatment sector, with a diverse product range and advanced manufacturing technologies [4]. Financial Summary - For the years 2024 to 2026, the company is projected to achieve revenues of 3.68 billion CNY, 3.72 billion CNY, and 3.75 billion CNY, with year-on-year growth rates of 2.2%, 1.0%, and 1.0% respectively [17]. - The net profit attributable to the parent company is expected to be 530 million CNY, 560 million CNY, and 573 million CNY for the same years, reflecting growth rates of 5.7%, 5.1%, and 2.4% [17]. - The company’s valuation is projected at 8.5, 8.1, and 7.9 times PE for the years 2024, 2025, and 2026 respectively [17]. Company Overview - The company specializes in automotive interior and exterior decorative parts, utilizing materials such as aluminum alloy, stainless steel, cold-rolled and galvanized steel, plastic, and rubber [4]. - It employs various advanced manufacturing and surface treatment processes, including aluminum alloy casting, extrusion, and multiple coating technologies, positioning itself as a leader in the domestic market [4]. - The company has established partnerships with major automotive manufacturers, including FAW-Volkswagen, BMW Brilliance, and BYD, among others [4].