ANHUI ZHONGDING(000887) Ping An Securities·2024-11-08 01:01Investment Rating - The investment rating for the company is "Recommended (Maintain)" [2][7] Core Views - The lightweight and air suspension businesses are experiencing high growth, with significant order volumes and a strong market position [4][5] - The company has a solid financial outlook, with expected net profits of 1.37 billion, 1.65 billion, and 1.98 billion for 2024, 2025, and 2026 respectively [7][10] - The company is benefiting from the expansion of hybrid vehicles and the strong performance of benchmark brands in the air suspension market [7] Summary by Sections Company Overview - Zhongding Co., Ltd. operates in the automotive industry, with a total market capitalization of 179 billion and a total share capital of 1,316 million shares [3] Business Performance - The lightweight business has seen revenue growth from 440 million in 2020 to approximately 3 billion, with orders totaling around 4.6 billion for the first half of 2024 [4] - The air suspension business is positioned for high growth, supported by the increasing localization of key components and successful product launches [5] Financial Projections - Revenue is projected to grow from 17.24 billion in 2023 to 27.51 billion in 2026, with a compound annual growth rate (CAGR) of 14.9% [10] - The net profit margin is expected to improve, with net profit increasing from 1.13 billion in 2023 to 1.98 billion in 2026 [10][11] Valuation Metrics - The company is currently valued at a low P/E ratio of 15.8 for 2023, which is expected to decrease to 9.1 by 2026, indicating potential for price appreciation [6][11]