Shanghai W-Ibeda High Tech.(688071) 国泰君安·2024-02-28 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to 51.33 CNY from the previous 61.30 CNY [1][12]. Core Insights - The company's revenue showed steady growth in 2023, achieving 382 million CNY, a year-on-year increase of 13.33%. However, the net profit attributable to shareholders significantly declined by 74.7% to 9.2 million CNY, primarily due to the new capacity being in a ramp-up phase [1][11]. - The report anticipates a substantial performance increase in 2024 as new capacity utilization improves and the inertial navigation business begins to scale up [1][11]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 382 million CNY, with a net profit of 9 million CNY, which was below expectations. The adjusted net profit forecast for 2023 is 0.11 CNY per share, with projections of 1.29 CNY and 2.57 CNY for 2024 and 2025 respectively [1][11]. - The EBIT for 2023 is projected at 46 million CNY, reflecting a significant decline from previous years [11]. Capacity and Business Development - The company is currently in a ramp-up phase for its new capacity, which has nearly doubled the number of testing rigs. However, the actual utilization rate remains low due to the ramp-up period exceeding six months [1][11]. - In 2024, the company expects to enter a phase of mass production for its testing services, which should lead to a significant increase in gross margin and overall profitability [1][11]. Market Position and Valuation - The report references comparable companies to derive a price-to-earnings (PE) ratio of 20 times for the year 2025, which supports the adjusted target price of 51.33 CNY [1][11]. - The company has established a strong client base in the automotive sector, including major players like SAIC General Motors and GAC Honda, which enhances its market position [1][11].