Beijing Jingwei Hirain Technologies (SH:688326) Orient Securities·2025-06-08 07:35Investment Rating - The report maintains a "Buy" rating for the company with a target price of 110.24 CNY, based on an expected transition from loss to profit by 2025 [2][5]. Core Insights - The company is expected to achieve a significant reduction in quarterly losses, with a focus on expanding its smart driving business and acquiring new customers and products [1][9]. - Revenue and profit forecasts have been adjusted, with projected EPS for 2025-2027 at 0.21, 2.08, and 3.16 CNY respectively, indicating a positive growth trajectory [2][4]. Financial Performance Summary - Revenue: Projected revenues are expected to grow from 4,678 million CNY in 2023 to 10,206 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 19.5% [4][12]. - Net Profit: The company is forecasted to transition from a net loss of 217 million CNY in 2023 to a net profit of 379 million CNY by 2027, with significant year-on-year growth rates [4][12]. - Gross Margin: The gross margin is expected to stabilize around 24.1% by 2027, after a slight decline in the earlier years due to market competition [4][9]. - Earnings Per Share (EPS): EPS is projected to improve from a loss of 1.81 CNY in 2023 to a profit of 3.16 CNY by 2027, indicating a strong recovery [4][12]. Business Segment Insights - Automotive Electronics: The automotive electronics segment is anticipated to grow significantly, with revenues expected to reach 44.06 billion CNY in 2024, driven by new product launches and customer acquisitions [9]. - R&D Services: The R&D services and solutions segment is projected to see a decline in revenue in 2024 but is expected to recover as overseas clients show increased interest in domestic supply chains [9][12].