FLAC(002536) 天风证券·2024-07-01 08:02Investment Rating - The report gives a "Buy" rating for the company with a target price of 13 yuan [35] Core Views - The company is a leader in engine cooling and emission reduction, with its traditional businesses in mechanical water pumps, exhaust manifolds, and turbocharger housings forming a solid foundation It is actively expanding into new energy thermal management modules and civilian thermal management businesses, while accelerating overseas expansion [32] - The company's 2023 revenue reached 4 095 billion yuan, a year-on-year increase of 25 69%, with net profit attributable to the parent company reaching 262 million yuan, a year-on-year increase of 211 14% The new energy cooling components and modules business revenue in 2023 was 370 million yuan, a year-on-year increase of 62 5% [32] - The company's overseas revenue accounted for 53 1% in 2023, with continuous expansion in international markets [32] Financial Performance - The company's gross margin and net margin rebounded in 2023, with gross margin reaching 20 9%, a year-on-year increase of 3 percentage points, and net margin reaching 5 9%, a year-on-year increase of 3 6 percentage points [4] - The company's R&D expenses reached 240 million yuan in 2023, with an R&D expense ratio of 5 9% [26] - The company's net profit attributable to the parent company in 2023 was 262 million yuan, a year-on-year increase of 211 14%, and in Q1 2024, it reached 120 million yuan, a year-on-year increase of 75 02% [24] Business Segments - The company's mechanical water pump market share is 25%, ranking among the top in the industry [68] - The company's turbocharger housing revenue accounted for 45 9% of total revenue in 2023, becoming the highest proportion among all product categories [89] - The company's new energy cooling components and modules business revenue in 2023 was 370 million yuan, a year-on-year increase of 62 5% [32] Market and Industry Analysis - The global turbocharger market is highly concentrated, with Garret, Cummins, BorgWarner, MHI, and IHI accounting for over 90% of the global market share [14] - The global new energy vehicle water pump market is expected to reach 4 09 billion USD by 2029, with a CAGR of 19 79% from 2022 to 2029 [83] - The value of thermal management systems in new energy vehicles has increased 2-3 times compared to traditional fuel vehicles, reaching 7,000 yuan per vehicle [87] R&D and Innovation - The company has obtained over 500 patents, including 141 invention patents and 2 international patents [70] - The company has 4 R&D centers, with the Shanghai and Wuhu centers focusing on new energy product development [70] - The company has completed multiple R&D projects, including new energy thermal management integration products and ultra-fast charging and energy storage system cooling modules [70] Expansion and Future Prospects - The company has established subsidiaries in Singapore and Thailand, with the Thailand factory expected to start production in 2025, contributing to the company's internationalization strategy [186] - The company plans to expand its product applications to IDC liquid cooling, 5G base stations, and other civilian thermal management fields [184] - The company's new energy and civilian thermal management businesses are expected to drive future growth, with significant potential in the data center liquid cooling market [177]