Southwest Securities·2024-03-17 16:00Investment Rating - The report maintains a "Buy" rating for Fuyao Glass [1] Core Views - The company reported strong Q4 performance with a revenue of 93.35 billion yuan, up 21.89% year-on-year, and a net profit of 15 billion yuan, up 75.9% year-on-year [2] - The gross margin for 2023 was 35.39%, an increase of 1.36 percentage points year-on-year, indicating continuous improvement in profitability [2] - The company is benefiting from the growing penetration of high-value-added products, with the average selling price (ASP) of automotive glass reaching 213.24 yuan per square meter, up 5.94% year-on-year [2] - Fuyao Glass is expanding its production capacity with a planned capital expenditure of 81.23 billion yuan in 2024, aiming to increase its market share in a highly concentrated industry [2] Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 331.61 billion yuan, a year-on-year increase of 18%, and a net profit of 56.29 billion yuan, up 18.37% year-on-year [2][4] - The company’s automotive glass sales volume reached 140.16 million square meters, an increase of 10.24% year-on-year [2] Growth Projections - The forecast for EPS from 2024 to 2026 is 2.33, 2.80, and 3.41 yuan, respectively, with a compound annual growth rate (CAGR) for net profit of 16.54% [3][4] - Revenue growth rates are projected at 17.22%, 16.46%, and 16.16% for the years 2024 to 2026 [4] Market Position - Fuyao Glass continues to outperform the industry, with the domestic automotive production and sales growing by 11.6% and 12% respectively in 2023 [2] - The company is expected to maintain its competitive edge through cost control, research and development investment, and a focus on high-value products [2]