CAERI(SH:601965) Haitong Securities·2024-08-19 06:46Investment Rating - The investment rating for the company is "Outperform the Market" [2][6]. Core Views - The company, China Automotive Research (中国汽研), is a national-level technology innovation and public service institution in the automotive industry, focusing on technology innovation and quality supervision [6]. - The main business segments include automotive technology services and equipment manufacturing, with 2023 revenues of 3.31 billion yuan from technology services and 673 million yuan from equipment manufacturing [6]. - The company has a strong position in the automotive technology service sector and is expected to benefit from the development of smart connected vehicles in China [6][8]. - The company has a history of consistent dividend payouts, with cumulative dividends exceeding 2.4 billion yuan since its listing, indicating strong shareholder return potential [6]. - Revenue forecasts for 2024, 2025, and 2026 are projected at 45.10 billion yuan, 49.27 billion yuan, and 53.23 billion yuan respectively, with net profits of 9.55 billion yuan, 10.53 billion yuan, and 11.54 billion yuan [6][7]. Summary by Sections Business Overview - China Automotive Research is a leading provider of automotive testing and evaluation services in China, with a focus on supporting technological innovation in the automotive sector [6]. - The company has developed capabilities in the Robotaxi sector, providing various testing and certification services [6]. Financial Performance - In the first half of 2024, the company reported a revenue of 2 billion yuan, a year-on-year increase of 20.38%, and a net profit of 377 million yuan, up 14.51% [6]. - The company’s revenue and profit growth are expected to continue, with a projected revenue growth rate of 12.6% in 2024 and 9.3% in 2025 [7][12]. Market Position and Valuation - The company is positioned as a leader in the automotive testing industry, with a strong potential to benefit from the growth of smart vehicles [6][8]. - The estimated price-to-earnings (P/E) ratio for 2024 is projected to be between 20-22 times, with a reasonable value range of 19.03 to 20.94 yuan per share [6][11].