JAC(SH:600418) Huaxin Securities·2024-06-26 00:00Investment Rating - The report maintains a "Buy" investment rating for Jianghuai Automobile (600418.SH) [3][6] Core Views - In 2023, Jianghuai Automobile achieved a turnaround in net profit, reporting a net profit attributable to shareholders of 1.52 billion yuan, compared to a loss of 1.58 billion yuan in 2022, marking an increase of 1.734 billion yuan [4][6] - The company experienced improvements in gross margin and effectively controlled operating expenses, with a gross margin of 11.29% in 2023, up 2.87 percentage points year-on-year [4][6] - Sales of both passenger and commercial vehicles have recovered, contributing to the improvement in gross margin [3][4] Summary by Sections Financial Performance - In 2023, total revenue reached 45.016 billion yuan, a year-on-year increase of 23.1% [4][6] - For Q1 2024, total revenue was 11.282 billion yuan, reflecting a year-on-year growth of 4.6% and a quarter-on-quarter increase of 2.2% [4][6] - The gross margin for Q1 2024 was 11.44%, up 0.61 percentage points from the previous quarter [4][6] Sales and Market Position - In 2023, the company sold 357,100 passenger vehicles and 231,100 commercial vehicles, representing year-on-year increases of 18.21% and 18.34%, respectively [5] - The overseas sales reached 169,600 units, a significant year-on-year increase of 47.99%, with passenger vehicle exports growing by 74.57% [5] Strategic Partnerships - Jianghuai Automobile has established comprehensive strategic cooperation with Huawei in product development, manufacturing, sales, and service, focusing on luxury intelligent connected electric vehicles [5][6] - The collaboration with Volkswagen is progressing smoothly, with the first product for export to Europe now in mass production [5][6] Profit Forecast - The forecast for revenue from 2024 to 2026 is 48.49 billion yuan, 69.20 billion yuan, and 80.71 billion yuan, respectively, with corresponding EPS of 0.12 yuan, 0.27 yuan, and 0.44 yuan [6][8]