Desay SV(SZ:002920) Tianfeng Securities·2024-09-20 04:01Investment Rating - The report maintains a "Buy" rating for the company with a target price of 129.85 CNY, indicating an expected return of over 20% within the next six months [4][14]. Core Views - The company's recent capital increase for expansion reflects strong confidence in current and future orders, with significant investments planned for various projects [2][3]. - The company is positioned to benefit from the high growth in automotive intelligence, being a leading manufacturer of domain controllers in China, and is expected to enhance its overseas revenue as factory construction progresses [2][3]. Financial Projections - Revenue is projected to grow from 28.57 billion CNY in 2024 to 44.28 billion CNY in 2026, with a compound annual growth rate (CAGR) of approximately 23.07% [3][8]. - Net profit attributable to the parent company is expected to increase from 2.06 billion CNY in 2024 to 3.47 billion CNY in 2026, reflecting a strong growth trajectory [3][8]. - Earnings per share (EPS) are forecasted to rise from 3.71 CNY in 2024 to 6.26 CNY in 2026 [3][8]. Capital Increase Details - The company plans to raise up to 4.5 billion CNY through a private placement, with the funds allocated to three major projects: the construction of an automotive electronics base, production of intelligent automotive electronic systems, and the development of an intelligent computing center [2][3]. - The first phase of the automotive electronics base in Chengdu is expected to require an investment of 1.96 billion CNY, while the intelligent automotive electronic systems project in Huizhou is projected to need 2.912 billion CNY [2][3]. Market Position - The company is recognized as a leader in the domain controller sector in China, with ongoing efforts to expand its manufacturing capabilities globally, thereby increasing its competitiveness in both domestic and international markets [2][3].