JJE(SH:688280)2024-07-10 11:00Investment Rating - The report does not explicitly state an investment rating for the company. Core Insights - The company, 精进电动, has been primarily focused on electric drive systems for new energy vehicles since its inception in 2008, but has faced significant challenges in maintaining market position and profitability [50][67]. - Despite being recognized as a leading player in the electric drive system market, the company has experienced a decline in market share and has fallen out of the top 10 rankings in recent years [68][83]. - The company has reported continuous losses, accumulating nearly 22 billion yuan in losses from 2018 to 2023, with a net loss of 5.8 billion yuan in 2023 alone [49][46]. Summary by Sections Market Position and Competition - In 2019, the domestic market share for electric drive systems was led by 比亚迪 with 20.2%, followed by 大洋电机 at 9.4% and 精进电动 at 7.8% [4]. - By 2023, the competitive landscape has intensified, with 精进电动's market share declining significantly, leading to a drop in its ranking to outside the top 10 [68][83]. Financial Performance - The company's revenue has stagnated around 800 million yuan, with a peak of 1.02 billion yuan in 2022, but dropping to 870 million yuan in 2023 [46][48]. - The report highlights that the company has been engaging in loss-making sales strategies, with a negative gross margin for four consecutive years [18][10]. Product Development and Technology - 精进电动 has developed several proprietary technologies and holds over 100 domestic and international patents, positioning itself as a technology leader in the electric drive system sector [56][29]. - The company is focusing on upgrading its products, particularly the "three-in-one" electric drive assembly, which incorporates advanced technologies to enhance performance [95][96]. Future Outlook - The report raises concerns about the company's ability to turn around its financial performance, especially given the competitive pressures and rising material costs affecting profitability [11][71]. - Despite recent revenue growth in the first quarter of 2024, the company still reported a loss of 120 million yuan, indicating ongoing financial challenges [24][90].