LUXSHARE-ICT(SZ:002475)2024-09-19 08:40Investment Rating - The report maintains a "Buy" rating for the company [5][6]. Core Views - The company plans to acquire 50.1% of Leoni AG for €205 million (approximately RMB 1.622 billion) and 100% of Leoni K for €320 million (approximately RMB 2.527 billion), totaling €525 million. This acquisition is expected to enhance the company's global competitiveness in automotive wiring harnesses [5]. - Leoni AG is a leading automotive wiring harness supplier in Europe and globally, with significant clients including BMW, General Motors, Volkswagen, and Mercedes-Benz. The acquisition will facilitate resource sharing and strategic collaboration between the company and Leoni [5]. - The company aims to leverage its cost control and operational efficiency to improve Leoni's performance, creating long-term value for shareholders. The automotive segment is projected to maintain a compound annual growth rate (CAGR) of 50% over the next three to five years [5]. Financial Summary - The company's total revenue for 2023 is projected at RMB 231.905 billion, with a year-on-year growth rate of 8.4%. The net profit attributable to shareholders is expected to be RMB 10.953 billion, reflecting a 19.5% increase [7][8]. - For 2024, the estimated revenue is RMB 269.310 billion, with a growth rate of 16.1%, and the net profit is projected to reach RMB 13.675 billion, a 24.9% increase [7][8]. - The earnings per share (EPS) for 2024 is expected to be RMB 1.90, with a price-to-earnings (PE) ratio of 19 [7][8].