RAYHOO MOTOR DIES(SZ:002997) Guoyuan Securities·2024-02-01 16:00Investment Rating - The report upgrades the investment rating to "Buy" [2][8]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 196 million to 217 million yuan in 2023, representing a year-on-year increase of 40% to 55%. The net profit after deducting non-recurring gains and losses is projected to be 173 million to 194 million yuan, reflecting a year-on-year increase of 70% to 90% [2]. - The manufacturing equipment business shows significant growth, complemented by the gradual mass production of component businesses, leading to a high growth in business scale. The company’s IPO fundraising capacity is fully released, and the capacity will further expand with ongoing convertible bond projects [2]. - The lightweight component business is expected to benefit from the high growth of Chery Automobile, which achieved cumulative sales of 1.8813 million vehicles in 2023, a historical high with a year-on-year increase of 52.6% [2]. Summary by Sections Financial Performance - Revenue for 2023-2025 is projected to be 1.841 billion, 2.802 billion, and 3.600 billion yuan respectively, with net profits of 208 million, 316 million, and 435 million yuan respectively. The corresponding basic earnings per share are estimated to be 1.08, 1.64, and 2.25 yuan, with price-to-earnings ratios of 20.63, 13.54, and 9.85 times [2][16]. Business Growth - The manufacturing equipment business is fully operational, and the lightweight component business is expanding with new production lines. The company is also developing its lightweight components business around Chery, which is expected to launch over 10 new energy models in 2024 [2][16]. Market Position - The company’s lightweight components are applied in various models of Chery, including the Star Era ES and the Smart S7, indicating a strong market position and potential for future growth [2].