FORYOU(SZ:002906) HTSC·2024-07-04 10:02Investment Rating - The report does not explicitly state an investment rating for the company Core Views - The company has transformed into a platform enterprise for smart cockpits, focusing on automotive electronics and precision die-casting, with a strong push into the smart driving sector. The expansion of high-margin products and the scaling of new categories are expected to drive performance upward [4][21][22]. Summary by Sections Business Overview - The company primarily operates in automotive electronics and precision die-casting, with a significant increase in the proportion of high-margin products. The revenue forecast for 2024-2026 is projected at 94.4 billion, 117.6 billion, and 143.5 billion CNY, respectively, with year-on-year growth rates of 32.2%, 24.6%, and 22.0% [4][6]. Market Trends - The smart cockpit market is expected to grow significantly, with the global market size projected to reach 44 billion USD by 2026, and China accounting for over 40% of this market. The penetration rate of smart cockpit configurations in new vehicles in China is expected to increase rapidly [26][40]. Financial Performance - The company has shown a consistent upward trend in revenue and net profit since 2020, with a notable rebound in 2024 Q1, achieving a revenue of 19.9 billion CNY, a year-on-year increase of 51.4%. The net profit for the same period was 1.4 billion CNY, up 82.1% year-on-year [21][22]. Product Development - The company is focusing on the development of advanced automotive electronics products, including HUD (Head-Up Display) and digital acoustic systems, which are expected to see significant market penetration and contribute to improved gross and net profit margins [21][46]. Customer Base - The company is expanding its customer base to include leading domestic and new energy vehicle manufacturers, with a forecasted increase in revenue from automotive electronics driven by new projects from key clients such as Changan, Geely, and others [10][18]. Competitive Landscape - The competitive landscape for smart cockpit components is becoming increasingly fragmented, with domestic manufacturers like the company gaining market share against traditional foreign suppliers. The report highlights the company's entry into the top ten suppliers for cockpit domain controllers in early 2024 [30][49].