WBTL(SH:603596) Guotou Securities·2024-03-27 16:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 77.7 CNY for the next six months [3][5]. Core Views - The company's performance in 2023 met expectations, with total revenue reaching 7.47 billion CNY, a year-on-year increase of 34.9%, and a net profit of 890 million CNY, up 27.6% year-on-year. The company plans to issue convertible bonds to enhance production capacity [1][5]. - The growth in the smart electronic control segment significantly contributed to the company's rapid expansion, with sales of smart electronic control products increasing by 48.93% year-on-year [1][5]. - The company is expanding its production capacity, particularly in the line control braking systems and lightweight components, with new production lines and facilities coming online [2][5]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 7.47 billion CNY, a 34.9% increase from the previous year, and a net profit of 890 million CNY, reflecting a 27.6% year-on-year growth. The adjusted net profit after excluding non-recurring items was 856 million CNY, up 36.78% year-on-year [1][5]. - The gross margin for 2023 was 22.57%, slightly up by 0.13 percentage points year-on-year, while the net profit margin for Q4 was 12.5%, an increase of 0.6 percentage points year-on-year [1][6]. Business Segments - The smart electronic control segment saw sales of approximately 3.72 million units in 2023, a 48.93% increase, driven by the ramp-up of line control braking products [1][2]. - The lightweight segment achieved sales of about 10.19 million units, up 31.32%, primarily due to the production commencement of the Mexican factory in Q3 [1][2]. - The disc brake segment sold 2.847 million units, reflecting a 26.55% increase year-on-year [1]. Future Outlook - The company is set to enhance its production capacity through the issuance of convertible bonds, which will add 1 million units of line control braking capacity [2][5]. - The next-generation line control braking system, WCBS 2.0, is expected to meet L3 level autonomous driving safety requirements and is projected to enter mass production in the first half of 2024 [2][5]. - The Mexican factory's production is expected to significantly boost the lightweight segment's capacity, with plans for further expansion in the coming years [2][5].