Desay SV(SZ:002920)2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for Desay SV [4][7]. Core Insights - The report emphasizes the advantages of Desay SV in the context of the automotive industry's evolving landscape, particularly regarding the impact of OEMs building in-house capabilities, management strengths, and overseas expansion potential [4][5][14]. - It highlights that the trend of OEMs opting for in-house development often correlates with poor cash flow, suggesting a ceiling on their capabilities [16][19]. - The report identifies two significant effects: the first is that OEMs' in-house initiatives stimulate more third-party smart solutions, and the second is that fragmented solutions favor Desay SV [16][19]. - Desay SV's management capabilities are noted as a significant advantage, allowing for market-oriented decision-making and fostering customer loyalty through ecosystem expansion [4][5][9]. Summary by Sections Market Data - Closing price: 102.73 CNY - Market capitalization: 56,657 million CNY - P/B ratio: 7.9 - Total shares: 555 million [2]. Financial Projections - Revenue forecasts for 2023-2025 are 20.55 billion, 27.02 billion, and 34.03 billion CNY, respectively - Net profit attributable to shareholders is projected at 1.593 billion, 2.249 billion, and 2.833 billion CNY for the same period [5][7][6]. Valuation Target - The valuation target is set at 89.8 billion CNY, corresponding to a 40x P/E for 2024, indicating significant upside potential from current levels [5][7]. Catalysts for Stock Performance - Recent contraction plans from several Tier 1 competitors and cautious statements from some OEMs are seen as catalysts for Desay SV's Alpha advantages [5][14].