WBTL(603596) HTSC·2025-05-09 02:40Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company reported a Q1 revenue of 2.638 billion RMB, representing a year-on-year increase of 41.83% but a quarter-on-quarter decrease of 21.45%. The net profit attributable to the parent company was 270 million RMB, up 28.79% year-on-year but down 37.25% quarter-on-quarter, with the decline attributed to annual price negotiations [1][2] - The company is expected to see continued growth in its WCBS products, with new intelligent chassis products like EMB and steer-by-wire anticipated to benefit from the rollout of advanced driver assistance systems [1][2] - The gross margin in Q1 was under pressure, decreasing by 2.3 percentage points to 18.0%, influenced by price negotiations and product mix changes. However, the introduction of higher value-added products is expected to optimize the profit structure [3] - The company has been expanding its global footprint, with new production capacities in Mexico and Morocco, which are expected to support major automotive clients and enhance profitability through scale effects [4] Financial Projections and Valuation - The company is projected to achieve net profits of 1.51 billion RMB, 1.93 billion RMB, and 2.42 billion RMB for the years 2025, 2026, and 2027, respectively. The target price for 2025 is set at 68.97 RMB, based on a PE ratio of 27.7 times [5][9] - Revenue forecasts for the company are 12.74 billion RMB in 2025, 16.29 billion RMB in 2026, and 20.57 billion RMB in 2027, with growth rates of 28.22%, 27.86%, and 26.24% respectively [7][18]