单四季度利润同比增长76%，盈利能力同环比提升

Investment Rating - The report maintains a "Buy" rating for Fuyao Glass (600660 SH) [1][3] Core Views - Fuyao Glass achieved a 76% YoY increase in Q4 2023 net profit, with both YoY and QoQ improvements in profitability [1] - The company's revenue in 2023 reached RMB 33 161 billion, up 18% YoY, with net profit attributable to shareholders of RMB 5 629 billion, also up 18% YoY [1] - The automotive glass ASP increased by 5 94% to RMB 213 per square meter in 2023, driven by industry upgrades [1] - Fuyao Glass's global market share in automotive glass reached 40 2% in 2023, up 0 2 percentage points YoY [1] Financial Performance - In Q4 2023, Fuyao Glass's revenue was RMB 9 335 billion, up 22% YoY and 6% QoQ, with net profit attributable to shareholders of RMB 1 503 billion, up 76% YoY and 17% QoQ [1] - The company's gross margin in 2023 was 35 39%, up 1 36 percentage points YoY, while the net margin attributable to shareholders was 16 97%, up 0 05 percentage points YoY [1] - In Q4 2023, the gross margin was 36 54%, up 3 69 percentage points YoY and 0 23 percentage points QoQ, with a net margin of 16 10%, up 4 94 percentage points YoY and 1 43 percentage points QoQ [1] Capacity Expansion - Fuyao Glass plans to invest RMB 3 25 billion in its Fujian subsidiary to build an annual production capacity of approximately 20 5 million square meters of automotive safety glass [1] - The company also plans to invest RMB 5 75 billion in its Hefei subsidiary to build an annual production capacity of approximately 26 1 million square meters of automotive safety glass and two float glass production lines [1] - The company's capital expenditure for 2024 is expected to be RMB 8 1 billion, up 82% YoY compared to the actual expenditure of RMB 4 5 billion in 2023 [1] High-Value-Added Products - The proportion of high-value-added products such as smart panoramic sunroof glass, dimmable glass, HUD glass, ultra-insulated glass, lightweight ultra-thin glass, and coated heated glass increased by 9 54 percentage points in 2023 [1] - The automotive glass industry's single-vehicle value is expected to grow at a CAGR of over 8% from 2020 to 2025, driven by the penetration of high-value-added glass [1] Market Outlook - The automotive glass industry is expected to benefit from the trend of electrification and intelligence, with the potential for increased glass usage per vehicle (from 4 square meters to 6 square meters) and higher value per square meter (from RMB 600 to over RMB 2000) [1] - The company's revenue for 2024-2026 is forecasted to be RMB 38 8 billion, RMB 44 billion, and RMB 51 2 billion, respectively, with net profit attributable to shareholders of RMB 6 2 billion, RMB 7 1 billion, and RMB 8 4 billion [1] Valuation - The target valuation for Fuyao Glass in 2024 is RMB 52-57, corresponding to a PE ratio of 22-24x, with a potential upside of 20%-31% from the current price [1]