WBTL(SH:603596) Minsheng Securities·2024-02-27 16:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 63.7 CNY per share, corresponding to a PE ratio of 30/22/15 for the years 2023/2024/2025 respectively [2][4]. Core Insights - The company is a leader in the domestic automotive brake system market, focusing on the development of line-controlled chassis systems, with a strong emphasis on intelligent electric control and lightweight components [1][17]. - The company has achieved impressive financial performance, with a CAGR of 28.5% in revenue and 34.5% in profit from 2014 to 2023 [1][26]. - The company is expanding its global footprint, with overseas orders amounting to approximately 14.1 billion CNY, and is actively investing in capacity expansion through convertible bonds [1][41]. Summary by Sections Business Overview - The company has established a comprehensive product portfolio that includes mechanical brakes, intelligent electric control systems, and steering systems, aiming to transition towards line-controlled chassis systems [1][19]. - The client base has evolved from traditional domestic brands to include new energy vehicle manufacturers and global platforms, enhancing the company's market position [1][22]. Financial Performance - The company forecasts revenue of 76.6 billion CNY for 2023, with a net profit of 9.2 billion CNY, reflecting a growth rate of 34.5% year-on-year [2][26]. - The projected revenue for 2024 and 2025 is 100.8 billion CNY and 139.8 billion CNY, respectively, with corresponding net profits of 12.3 billion CNY and 18.2 billion CNY [2][4]. Market Trends - The shift towards electric and intelligent vehicles is driving demand for advanced braking systems, with the company positioned to benefit from this trend through its innovative product offerings [1][32]. - The penetration rate of electronic parking brakes (EPB) has exceeded 80% in the market, indicating a strong trend towards electric control systems [1][34]. Investment Strategy - The company plans to utilize the proceeds from its convertible bond issuance to enhance its production capacity and maintain its competitive edge in the line-controlled braking sector [1][41]. - The ongoing development of new products, such as the WCBS2.0 and EMB, is expected to further solidify the company's market leadership [1][19].