NJEC(SH:600699) Huaan Securities·2025-05-11 04:25Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company demonstrated stable operations and improved profitability in Q1 2025, with a year-on-year revenue increase of 9.78% to 14.576 billion yuan and a net profit increase of 11.08% to 340 million yuan [5][7] - The company is actively exploring opportunities in the robotics sector, having signed a strategic cooperation agreement with a robotics firm to develop core technologies [6] Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 145.76 billion yuan, with the automotive safety segment contributing approximately 92 billion yuan, automotive electronics around 40 billion yuan, and Xiangshan shares about 14 billion yuan [5] - The gross profit margin for Q1 2025 was 17.9%, an increase of 2.6 percentage points year-on-year, driven by cost reduction and efficiency improvement measures [5] - The company expects revenues of 646.69 billion yuan, 690.35 billion yuan, and 737.98 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 15.47 billion yuan, 18.80 billion yuan, and 21.91 billion yuan [7][10] Business Development - The company is focusing on enhancing its global strategy by integrating business and capital, which is expected to drive order fulfillment and business synergy [7] - The introduction of the new immersive smart cockpit JoySpace+ at the Shanghai Auto Show showcases the company's commitment to innovation in automotive technology [6] Profitability Outlook - The company is projected to maintain a steady increase in profitability, with net profit margins expected to rise from 1.7% in 2024 to 3.0% by 2027 [10] - The expected P/E ratios for 2025, 2026, and 2027 are 15.25, 12.55, and 10.76 respectively, indicating a favorable valuation trend [10]