Desay SV(002920) HTSC·2025-03-18 03:02Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 159.66 [7][8]. Core Views - The company reported a revenue of RMB 27.618 billion for 2024, reflecting a year-over-year growth of 26.06%, and a net profit of RMB 2.005 billion, up 29.62% year-over-year. The revenue for Q4 was RMB 8.643 billion, showing a year-over-year increase of 16.2% [1][2]. - The company is expected to benefit from accelerated adoption of intelligent driving technologies and increasing overseas market contributions, leading to strong revenue and profit growth from 2025 to 2027 [1][4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of RMB 27.618 billion, which is in line with expectations, and a net profit of RMB 2.005 billion, slightly below expectations by 4.6% [1][2]. - The revenue breakdown for 2024 includes RMB 18.230 billion from cockpit, RMB 7.314 billion from intelligent driving, and RMB 2.074 billion from connectivity and other businesses, with growth rates of 15.36%, 63.06%, and 27.99% respectively [2]. Profitability Metrics - The Q4 gross margin was 18.40%, down 3.14 percentage points quarter-over-quarter, primarily due to changes in accounting policies and increased financial expenses [3]. - The net profit margin for Q4 was 6.95%, also reflecting a decline of 0.89 percentage points quarter-over-quarter [3]. Growth Projections - Revenue projections for 2025 to 2027 are RMB 34.193 billion, RMB 41.201 billion, and RMB 49.615 billion respectively, with growth rates of 23.81%, 20.50%, and 20.42% [4][6]. - The net profit projections for the same period are RMB 2.599 billion, RMB 3.174 billion, and RMB 4.008 billion, with growth rates of 29.65%, 22.11%, and 26.29% respectively [4][6]. Market Position and Strategy - The company has demonstrated a leading market position in intelligent driving and smart cockpit sectors, with new annual orders exceeding RMB 27 billion in 2024 [2]. - The company is expanding its overseas presence, with international orders exceeding RMB 5 billion in 2024 and establishing new facilities in Germany, France, and Spain [2].