WINGTECH(SH:600745) EBSCN·2025-04-16 10:16Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future investment returns [3][5]. Core Insights - The company plans to divest its communications business to focus on semiconductor operations, particularly benefiting from the growth in the automotive semiconductor sector [1][2]. - The company is a leading global supplier of automotive semiconductors, with 62.8% of its semiconductor revenue coming from the automotive sector in 2023, projected to reach 63% in the first half of 2024 [2]. - The report adjusts profit forecasts due to a weaker outlook for the consumer electronics sector, projecting a net profit of -3.306 billion yuan for 2024, but expects recovery in subsequent years [3]. Summary by Sections Business Strategy - The company is transferring its communications business to Luxshare Precision, allowing it to concentrate on semiconductor operations, which will clarify its growth trajectory [1]. Financial Performance - Revenue is projected to grow from 61.213 billion yuan in 2023 to 85.7 billion yuan by 2026, with a compound annual growth rate of approximately 12.76% [4][8]. - The net profit forecast for 2024 is revised down to -3.306 billion yuan, with a recovery expected in 2025 and 2026, reaching 1.578 billion yuan and 2.518 billion yuan respectively [3][8]. Market Position - The company has established strong relationships with major automotive Tier 1 suppliers and OEMs, enhancing its competitive advantage in the automotive semiconductor market [2]. - The company’s products are critical in various automotive systems, including drive, power, and control systems, indicating a robust demand outlook as automotive technology evolves [2]. Valuation Metrics - The report provides a P/E ratio of 34 for 2023, with expectations of a decrease to 25 in 2025 and further to 16 in 2026, reflecting anticipated recovery in profitability [4][10]. - The projected EPS for 2024 is -2.66 yuan, with a rebound to 1.27 yuan in 2025 and 2.02 yuan in 2026 [4][10].