NJEC(SH:600699) Southwest Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 25.92 CNY over the next six months [1][6]. Core Insights - The company reported a revenue of 55.728 billion CNY in 2023, representing a year-on-year growth of 11.92%. The net profit attributable to shareholders was 1.083 billion CNY, up 174.79% year-on-year, while the net profit excluding non-recurring items reached 1.003 billion CNY, growing by 219.21% [2][6]. - The company has secured new orders totaling approximately 73.7 billion CNY in 2023, with over 60% of these orders related to new energy vehicles [3][6]. - The company is focusing on key areas of electric and intelligent automotive technology, with a total R&D investment of about 3.65 billion CNY in 2023 [3][6]. Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 14.418 billion CNY, with a quarter-on-quarter growth of 2.62% and a year-on-year growth of 0.85%. The net profit for the same quarter was 304 million CNY, reflecting a quarter-on-quarter increase of 15.59% and a year-on-year increase of 0.33% [2][6]. - The overall gross margin for the company improved throughout 2023, with Q4 gross margin reaching 18.38% [2][6]. Business Segments - The automotive safety segment generated revenue of 38.528 billion CNY, growing by 12.0% year-on-year, while the automotive electronics segment brought in 16.789 billion CNY, with an 11.2% increase [2][6]. - The gross margin for automotive safety and electronics segments improved to 12.77% and 20.65%, respectively, indicating a positive trend in profitability [2][6]. Market Position and Strategy - The company has a strong market position, being the second-largest globally in automotive safety, with significant growth in the Americas and Asia [2][3]. - The company is actively enhancing its product offerings in smart cockpit and intelligent driving technologies, aligning with the trends in electric and intelligent vehicles [3][6]. Future Outlook - The company forecasts a compound annual growth rate (CAGR) of 29.6% for net profit from 2024 to 2026, with expected net profits of 1.518 billion CNY, 1.946 billion CNY, and 2.361 billion CNY for the respective years [6][10]. - The projected revenue for 2024-2026 is 61.434 billion CNY, 68.986 billion CNY, and 76.198 billion CNY, with growth rates of 10.24%, 12.29%, and 10.45% respectively [10][12].