KEBODA(SH:603786) Minsheng Securities·2024-07-17 03:07Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 53.57 CNY per share [1][3]. Core Insights - The company is expected to achieve revenue of 26.50 to 28.40 billion CNY in H1 2024, representing a year-on-year growth of 35% to 45%, and a net profit attributable to shareholders of 3.58 to 3.85 billion CNY, reflecting a growth of 30% to 40% [1]. - The company is a leading player in the domestic automotive controller market, with a strong product and customer structure that is expected to benefit from the smart electrification trend [3]. - The company has transitioned from a focus on lighting control to becoming a platform-based automotive electronics supplier, with strong capabilities in both hardware and software [2]. Financial Performance Summary - Revenue projections for 2024 to 2026 are 64.31 billion CNY, 78.65 billion CNY, and 98.62 billion CNY, respectively, with net profits of 8.43 billion CNY, 10.89 billion CNY, and 14.05 billion CNY [3][4]. - The company’s revenue growth rates are projected at 39.05% for 2024, 22.30% for 2025, and 25.39% for 2026 [6]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are 2.09 CNY, 2.70 CNY, and 3.48 CNY, respectively, with corresponding price-to-earnings (PE) ratios of 26, 20, and 15 [3][4]. Product and Market Strategy - The company has established a strong market presence with major clients, including Volkswagen, Tesla, and BYD, and is expanding its product offerings to align with the electrification of vehicles [2]. - The company is focusing on domain control products and has begun mass production of body domain controllers and chassis domain controllers, enhancing its competitive position in the automotive electronics sector [2]. Financial Metrics - The company’s gross margin is projected to improve from 29.55% in 2023 to 31.61% in 2026, indicating enhanced profitability [6]. - The return on equity (ROE) is expected to increase from 20.12% in 2023 to 18.12% in 2026, reflecting strong financial health [6].