Autel(688208) ZHESHANG SECURITIES·2024-10-13 06:03Investment Rating - The investment rating for the company is upgraded to "Buy" from "Accumulate" [3][5]. Core Views - The company is expected to achieve operating revenue of 2.66 to 2.94 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 21.48% to 34.27%. The net profit attributable to shareholders is forecasted to be between 520 to 570 million yuan, indicating a year-on-year increase of 95.10% to 113.86% [1]. - The company is capitalizing on opportunities in the overseas new energy charging industry and is focusing on the digital energy market, leveraging its systematic advantages in products, technology, brand, market, service, and global supply chain to achieve rapid growth and establish long-term competitive barriers [1]. - The trends of automotive intelligence and electrification are driving the company's main business and new energy business to develop in synergy. The demand for the company's ADAS series products is expected to increase, supporting the growth of traditional diagnostic business [2]. Financial Summary - The company’s revenue projections for 2024 to 2026 are 4.055 billion, 5.155 billion, and 6.481 billion yuan, respectively, with year-on-year growth rates of 24.71%, 27.15%, and 25.72%. The net profit attributable to shareholders is expected to be 600 million, 746 million, and 953 million yuan for the same period [3][4]. - The forecasted earnings per share for 2024, 2025, and 2026 are 1.33, 1.65, and 2.11 yuan, respectively [4]. Market Position - The company is positioned well within the automotive diagnostic tools market and is experiencing robust growth in its overseas charging pile business, which is seen as a second growth curve [2][3]. - The company’s total market capitalization is approximately 14.48 billion yuan, with a closing price of 32.04 yuan [5]. Financial Ratios - The projected P/E ratios for 2024, 2025, and 2026 are 80.78, 24.12, and 19.40, respectively, indicating a significant decrease in valuation multiples as earnings grow [4]. - The company’s return on equity (ROE) is expected to improve from 5.57% in 2023 to 17.62% by 2026 [4]. Conclusion - The company is experiencing high growth driven by favorable market conditions and strategic positioning in the new energy sector, making it an attractive investment opportunity [1][2][3].