FORYOU(002906) Guohai Securities·2024-10-16 23:00Investment Rating - The report maintains an "Accumulate" rating for Huayang Group (002906) [1] Core Views - The company is entering a rapid growth phase, with a significant increase in net profit forecast for Q3 2024, driven by strong performance in automotive electronics and precision die-casting businesses [3][4] - The expected net profit for the first three quarters of 2024 is projected to be between 450 million to 475 million yuan, representing a year-on-year increase of 51.26% to 59.67% [2][3] - The Q3 2024 net profit is anticipated to be between 163 million to 188 million yuan, indicating a year-on-year growth of 40.86% to 62.45% [2][3] Summary by Sections Financial Performance - The average forecast for net profit in Q3 2024 is 176 million yuan, reflecting a year-on-year increase of 51.7% and a quarter-on-quarter increase of 21.4% [3] - The company’s revenue from automotive electronics and precision die-casting has seen substantial growth, contributing to improved sales profit margins due to scale effects and management enhancements [3][4] Business Drivers - The automotive electronics segment focuses on "smart cockpits, intelligent driving, and smart connectivity," with a diverse product range including in-car screens, HUDs, electronic rearview mirrors, and wireless charging systems [4] - The precision die-casting business is expanding capacity in factories located in Huizhou and Changxing, with expected revenue growth from new projects with major clients such as ZF, Bosch, and BorgWarner [4] Earnings Forecast - The company is projected to achieve total revenue of 9.45 billion yuan in 2024, with a year-on-year growth rate of 32% [6] - The net profit for 2024 is expected to reach 657 million yuan, reflecting a growth rate of 41% [6] - The earnings per share (EPS) is forecasted to be 1.25 yuan for 2024, with a corresponding price-to-earnings (P/E) ratio of 23.95 [6][8]