HASCO(SH:600741) HTSC·2025-04-30 06:54Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 24.53 RMB [8][9]. Core Views - The company reported a revenue of 168.85 billion RMB in 2024, a year-on-year increase of 0.2%, and a net profit attributable to shareholders of 6.69 billion RMB, a decrease of 7.3% year-on-year. The results were in line with market expectations [1]. - The company is expected to recover as high-value-added products are gradually introduced and major client SAIC undergoes digital transformation [1]. - The company is actively expanding its product lines in intelligent cockpits and chassis systems, which are anticipated to become new growth points [4]. Revenue and Profit Analysis - The interior and exterior trim segment achieved a revenue of 119.36 billion RMB in 2024, up 5.6% year-on-year, while the functional components segment saw a decline of 9.0% to 25.97 billion RMB [2]. - The company’s gross margin decreased by 1.0 percentage points to 12.1% in 2024, primarily due to changes in customer structure [3]. - The first quarter of 2025 showed a revenue increase of 9.1% year-on-year, indicating a potential return to growth as projects with independent brands ramp up [2]. Financial Forecasts - The net profit forecasts for 2025 and 2026 have been adjusted downwards by 8% and 6% to 7.11 billion RMB and 7.81 billion RMB, respectively, with an expected net profit of 8.71 billion RMB in 2027 [5]. - The company is projected to maintain a PE ratio of 10.9x for 2025, reflecting the high proportion of traditional business and joint venture clients [5]. Market Position and Valuation - The company’s market capitalization is approximately 53.6 billion RMB, with a closing price of 17.00 RMB as of April 29 [9]. - The average PE ratio of comparable companies for 2025 is estimated at 12.7x, indicating a competitive valuation landscape [5][17].