Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to HKD 7.27, corresponding to approximately 21 times the 2025 EPS [4][6]. Core Insights - The company's total revenue for 2024 is projected to increase by 1.6% year-on-year to USD 4.28 billion, with a gross margin improvement of 1.7 percentage points to 10.5% [1]. - EBITDA is expected to rise by 22.5% to USD 420 million, while net profit is forecasted to grow by 68% to USD 62 million [1]. - The second half of 2024 is anticipated to show stronger performance, with revenue increasing by 3.4% to USD 2.18 billion and net profit soaring by 1577.3% to USD 46 million [1]. Revenue and Profitability by Region - The Asia-Pacific region's revenue is expected to grow by 10.1% to USD 1.34 billion, increasing its share of total revenue by 2 percentage points to 31% [2]. - North America is projected to see an EBITDA margin increase of 2.3 percentage points to 8.1% [2]. - The overall EBITDA margin for the company is expected to rise by 1.7 percentage points to 9.9% due to cost optimization and growth in both regions [2]. New Orders and Product Development - The company secured new orders totaling USD 6 billion in 2024, with significant breakthroughs in steer-by-wire, DP-EPS, and rear-wheel steering [3]. - Notable new orders include projects from leading North American electric vehicle manufacturers and major Chinese automakers [3]. - The company is expanding its customer base and optimizing its business layout, which is expected to enhance cost efficiency and support future growth [3]. Financial Projections - The company’s total revenue is projected to grow at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2027, reaching USD 4.8 billion by 2027 [5]. - Net profit is expected to increase significantly, with a projected growth rate of 79.5% in 2025 and 21.8% in 2027 [5]. - The report outlines a gradual improvement in EPS, with estimates of USD 0.04 in 2025 and USD 0.07 in 2027 [5]. Valuation Metrics - The report provides a P/E ratio forecast, decreasing from 50.3 in 2023 to 10.6 by 2027, indicating an improving valuation as earnings grow [5]. - The company's return on equity (ROE) is expected to rise from 3.12% in 2024 to 7.13% in 2027, reflecting enhanced profitability [5].
耐世特：2024年报业绩点评：全年业绩符合预期，线控转向新增订单持续突破-20250326