FYG,FUYAO GLASS(SH:600660) Soochow Securities·2024-03-16 16:00Investment Rating - The report maintains a "Buy" rating for Fuyao Glass [1] Core Views - Fuyao Glass achieved a revenue of 33.16 billion yuan in 2023, representing an 18.02% year-on-year increase, with a net profit of 5.63 billion yuan, up 18.37% year-on-year. Q4 2023 revenue reached 9.335 billion yuan, with a year-on-year growth of 21.89% and a net profit of 1.503 billion yuan, reflecting a significant increase of 75.88% year-on-year [2][3] - The company is expected to maintain a steady growth trajectory, with projected revenues of 36.68 billion yuan in 2024 and 41.14 billion yuan in 2025, alongside net profits of 6.12 billion yuan and 7.28 billion yuan respectively [4] Summary by Sections Financial Performance - In Q4 2023, domestic automobile production reached 9.086 million units, showing a year-on-year increase of 23.32%. Fuyao's gross margin improved to 36.54%, up 3.70% year-on-year, driven by scale effects [3] - The company sold 1.4016 million square meters of automotive glass and 1.8276 million tons of float glass in 2023, with revenues of 29.887 billion yuan and 5.708 billion yuan respectively, and gross margins of 30.59% and 28.71% [3] Future Outlook - For 2024, Fuyao anticipates a total funding requirement of 41 billion yuan, with operational expenditures of 29.5 billion yuan and a dividend payout of 3.393 billion yuan, indicating a dividend rate of 60.27% [4] - The company aims to enhance its competitiveness in the automotive glass sector by expanding its product offerings and maintaining a focus on high-value products [4] Earnings Forecast and Valuation - The report maintains the forecast for Fuyao's net profit at 6.1 billion yuan for 2024 and 7.3 billion yuan for 2025, with projected earnings per share (EPS) of 2.34 yuan, 2.79 yuan, and 3.17 yuan for 2024, 2025, and 2026 respectively [4] - The price-to-earnings (P/E) ratios are expected to be 18.62, 15.64, and 13.79 for the years 2024, 2025, and 2026 respectively [4]