YADEA(01585) 中泰证券·2024-03-19 16:00Investment Rating - The report maintains a "Buy" rating for the company with a market price of HKD 13.44 [1]. Core Views - The company's profit performance exceeded previous expectations, with a revenue of HKD 34.8 billion in 2023, representing a year-on-year growth of 12%, and a net profit of HKD 2.64 billion, reflecting a 22% increase [3][4]. - The company is expected to maintain its profit forecasts for 2023-2024, with projected profits of HKD 2.6 billion and HKD 3.2 billion respectively, while sales growth is anticipated to rebound in Q2 [2][3]. - The company is focusing on optimizing its product mix, which has impacted gross margins but benefited net margins due to scale [2][3]. Financial Performance Summary - Revenue and Profit Forecasts: - 2022A: Revenue of HKD 31.1 billion, Net Profit of HKD 2.16 billion - 2023A: Revenue of HKD 34.8 billion, Net Profit of HKD 2.64 billion - 2024E: Revenue of HKD 40.0 billion, Net Profit of HKD 3.20 billion - 2025E: Revenue of HKD 46.1 billion, Net Profit of HKD 3.84 billion - 2026E: Revenue of HKD 53.2 billion, Net Profit of HKD 4.61 billion - Growth rates for revenue and net profit are projected at 15% and 20% respectively for the coming years [1][3]. - Earnings Per Share (EPS): - 2022: HKD 0.71 - 2023: HKD 0.86 - 2024: HKD 1.05 - 2025: HKD 1.25 - 2026: HKD 1.50 [1][3]. - Return on Equity (ROE): - 2022: 39% - 2023: 35% - 2024: 32% - 2025: 28% - 2026: 26% [1][3]. - Price-to-Earnings (P/E) Ratio: - 2022: 17.3 - 2023: 14.2 - 2024: 11.7 - 2025: 9.7 - 2026: 8.1 [1][3]. Market and Operational Insights - The company reported a sales volume of 8.21 million units in H1 2023, a 34% increase, with an average revenue per unit of HKD 2,075 [3]. - The company is expected to benefit from structural optimization and a rebound in average selling prices in 2024 [4]. - The company is also exploring new markets and services, including sodium batteries and battery after-sales services, which are anticipated to contribute to revenue in 2024 [2][3].