CAERI(601965) Haitong Securities·2024-11-11 02:14Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights the growth potential of the company driven by the trend of smart technology in the automotive industry. The company reported a revenue of 1.02 billion yuan for Q3 2024, representing a year-on-year increase of 13.9%. The net profit attributable to the parent company was 260 million yuan, up 22.0% year-on-year [5][6] Financial Performance - For the first half of 2024, the company successfully advanced its various business segments, focusing on market and customer needs. The automotive technology service business saw a year-on-year increase in business volume, while the specialized vehicle modification and sales business optimized market development strategies, leading to an increase in new orders and revenue [5] - The company achieved significant cost reduction, with the decline in operating costs exceeding the decline in revenue. The hydrogen energy-related products in the automotive gas system and key components business also saw revenue growth due to successful acceptance and delivery [5] Earnings Forecast and Valuation - The company is expected to generate revenues of 4.5 billion yuan, 4.9 billion yuan, and 5.3 billion yuan for the years 2024, 2025, and 2026, respectively. The net profit attributable to the parent company is projected to be 955 million yuan, 1.05 billion yuan, and 1.15 billion yuan for the same years. The earnings per share (EPS) are forecasted to be 0.95 yuan, 1.05 yuan, and 1.15 yuan [6][9] - Based on comparable companies, a price-to-earnings (PE) ratio of 22-24x for 2025 is suggested, leading to a reasonable value range of 20.94 to 22.84 yuan per share [6] Market Comparison - The company's stock performance is compared against the CSI 300 index, showing a relative performance of -1.3% over one month, 19.2% over two months, and 20.5% over three months [4]