IKD(SH:600933) Huaxin Securities·2024-06-26 07:30Investment Rating - The report maintains a "Buy" investment rating for the company [2][3]. Core Insights - The company has demonstrated rapid revenue growth and continuous improvement in profitability, with Q1 2024 revenue reaching 1.64 billion and a year-on-year increase of 30.7% [2]. - The net profit for Q1 2024 was 230 million, reflecting a year-on-year growth of 36.9% [2]. - The company is actively expanding its product matrix and optimizing its global layout, with new production capacities being established in Hungary and Mexico to support European and North American clients [2]. - The gross margin for 2023 was 29.1%, with a slight increase in Q1 2024 to 29.7%, indicating stable profitability [2]. Revenue and Profitability Forecast - The company is projected to achieve revenues of 7.73 billion, 9.88 billion, and 12.44 billion for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.15, 1.48, and 1.75 [3]. - The expected growth rates for revenue are 29.8%, 27.8%, and 25.9% for the years 2024, 2025, and 2026 respectively [4]. - The net profit is forecasted to be 1.126 billion, 1.446 billion, and 1.709 billion for the same years, with growth rates of 23.2%, 28.5%, and 18.2% [4]. Financial Metrics - The company’s current PE ratios are projected to be 13.5, 10.5, and 8.9 for 2024, 2025, and 2026 respectively, indicating a favorable valuation [3]. - The return on equity (ROE) is expected to improve from 13.9% in 2023 to 20.5% by 2026, reflecting enhanced profitability [4].