QI AUTOMOTIVE CO.(837242) 东吴证券·2025-01-20 12:13Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Viewpoints - The company is transitioning to in-house production of high-margin automotive electronic products, with expected growth in cross-border e-commerce orders [3][10]. - The automotive aftermarket in China is anticipated to grow significantly, driven by the dual effects of vehicle ownership and age [9][38]. Summary by Sections 1. Company Overview - The company, established in 2004, is a leading supplier in the automotive aftermarket for non-wear parts, focusing on both domestic and international markets [15]. - It has developed a comprehensive supply chain management service, collaborating with major clients both domestically and internationally [15][20]. 2. Market Dynamics - The automotive aftermarket is closely linked to vehicle ownership and age, with a growing demand expected as vehicle ages increase [35][38]. - The U.S. automotive aftermarket is projected to grow steadily, while China's market is still developing, indicating significant potential for future growth [36][38]. 3. Product and Production Strategy - The company manages over 30,000 SKUs across various automotive systems, ensuring product quality and delivery stability through a mature supply chain [3][55]. - The transition to in-house production of automotive electronics is underway, with a focus on expanding product offerings and enhancing production capabilities [3][10]. 4. Financial Projections - The company forecasts significant revenue growth, with total revenue expected to reach 786.45 million yuan in 2024, representing a year-on-year increase of 40.83% [1]. - Net profit is projected to grow to 106.13 million yuan in 2024, reflecting a 52.37% increase compared to the previous year [1][10]. 5. Sales and Revenue Growth - The company has seen a substantial increase in sales, with a 67.7% year-on-year growth in revenue from mainland China in 2023, which is expected to continue into 2024 [3][28]. - The growth in online orders, particularly from cross-border e-commerce clients, is contributing to the overall revenue increase [3][28]. 6. Investment Valuation - The current stock price corresponds to a dynamic P/E ratio of 17.18 for 2024, indicating a favorable valuation for potential investors [1][10].