Shenzhen VMAX New Energy (SH:688612) KAIYUAN SECURITIES·2024-10-21 08:10Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is one of the first listed companies to implement a stock repurchase program using special loans, which is expected to enhance investor confidence and optimize the capital structure [1] - The company plans to repurchase shares worth between 50 million to 100 million RMB, representing 0.34% to 0.68% of the total share capital [2] - The company is a leading third-party supplier of automotive power systems, with significant progress in international markets [1] Financial Summary - The company’s projected net profit for 2024-2026 is 608 million, 742 million, and 908 million RMB respectively, with corresponding EPS of 1.44, 1.76, and 2.16 RMB per share [1] - Revenue is expected to grow from 5,523 million RMB in 2023 to 10,559 million RMB in 2026, reflecting a compound annual growth rate (CAGR) of approximately 24.6% [3] - The company’s gross margin is projected to remain stable around 19.8% for 2024, with a slight decline to 18.7% by 2026 [3] - The P/E ratio is expected to decrease from 21.7 in 2023 to 12.0 by 2026, indicating an attractive valuation [3] Share Repurchase Details - The repurchase plan includes a minimum of 10 million RMB and a maximum of 20 million RMB allocated for employee stock ownership plans or equity incentives, while 40 million to 80 million RMB is designated for capital reduction [2] Market Context - The company is positioned favorably within the automotive industry, particularly in the electric vehicle sector, which is experiencing rapid growth despite potential market challenges [1][2]