Autel(SH:688208) Soochow Securities·2024-09-30 02:11Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has launched an employee stock ownership plan and a stock incentive plan, indicating strong confidence in future performance [1] - The company continues to invest heavily in R&D, maintaining a competitive edge in core technologies within the industry [2] - The company is expected to benefit from the growth of the charging station market in the U.S., which currently lags behind Europe and China [3] - The digital repair business is performing steadily, serving as a solid foundation for the company's earnings [3] - Adjusted profit forecasts for 2024, 2025, and 2026 are set at 6.3 billion, 6.8 billion, and 9.2 billion CNY respectively, reflecting the impact of the incentive plans on short-term profits [3] Summary by Sections Investment Highlights - The employee stock ownership plan targets up to 72 individuals, with a purchase price of 26.58 CNY per share, totaling a maximum of 1.23 billion CNY [1] - The stock incentive plan aims to grant 976.96 million shares to 231 key personnel at a price of 13.29 CNY per share, with a total estimated cost of 1.4 billion CNY [1] - Performance targets for the incentive plans include a net profit growth rate of no less than 200% in 2024 and 300% in 2025, based on the 2023 net profit [1] Financial Performance - Total revenue is projected to grow from 3.25 billion CNY in 2023 to 6.71 billion CNY by 2026, with a compound annual growth rate of approximately 28.52% [1] - The net profit is expected to increase significantly, with a forecast of 631.09 million CNY in 2024, representing a 252.11% year-on-year growth [1] - The latest diluted EPS is projected to rise from 0.40 CNY in 2023 to 2.03 CNY in 2026 [1] Market Position - The company has established a strong position in the digital repair market, particularly in North America and Europe, with a revenue of 1.44 billion CNY in the first half of 2024, up 18% year-on-year [3] - The U.S. market for charging stations is underdeveloped compared to Europe and China, providing the company with significant growth opportunities as it expands its product and sales network [3]