NJEC(600699) Southwest Securities·2024-11-01 02:31Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 16.87 yuan and a target price not specified for the next six months [1]. Core Insights - The company has shown significant improvement in cost reduction and efficiency, leading to strong growth in automotive safety profits. The first three quarters of 2024 saw a revenue of 41.135 billion yuan, a slight decrease of 0.42% year-on-year, while the net profit attributable to shareholders increased by 20.90% to 0.941 billion yuan [1][2]. - The company has received new orders totaling approximately 70.4 billion yuan globally, a year-on-year increase of 19.3%, with a notable focus on new energy vehicle-related orders [2]. - The company is actively expanding its business in the intelligent electric vehicle sector, enhancing its competitive edge through increased R&D investment and the introduction of new technologies [2]. Financial Performance Summary - For the first three quarters of 2024, the automotive safety business generated revenue of 28.4 billion yuan with a gross margin of 14.0%, up 2.6 percentage points year-on-year. The automotive electronics segment achieved revenue of 12.7 billion yuan with a stable gross margin of 19.2% [1]. - The gross margin for the first three quarters of 2024 was 15.59%, an increase of 1.65 percentage points year-on-year, while the net profit margin was 3.07%, up 0.96 percentage points year-on-year [1]. - The company forecasts net profits of 1.345 billion yuan, 1.830 billion yuan, and 2.256 billion yuan for 2024, 2025, and 2026 respectively, with a compound annual growth rate (CAGR) of 27.7% [3][4]. Business Development Summary - The company has deepened its collaboration with domestic brands and new forces in the automotive market, with domestic new orders amounting to approximately 31 billion yuan, a year-on-year increase of 24% [2]. - The company is expanding its product categories in the intelligent driving and connected vehicle sectors, acquiring new business in UWB technology and ADAS L2 Smart Camera [2].