FORYOU(SZ:002906) Guohai Securities·2024-03-29 16:00Investment Rating - The investment rating for Huayang Group is "Accumulate (Maintain)" [5][8]. Core Views - In 2023, Huayang Group achieved a revenue of 7.137 billion yuan, a year-on-year increase of 26.6%, and a net profit attributable to shareholders of 0.465 billion yuan, up 22.2% year-on-year. The fourth quarter of 2023 saw a revenue of 2.34 billion yuan, a significant increase of 43.6% year-on-year, and a net profit of 0.167 billion yuan, up 47.6% year-on-year [1][4]. - The company is expanding its order book and rapidly iterating its products, which opens up future growth opportunities. In 2023, the automotive electronics business saw increased collaboration with existing clients and successfully penetrated new clients such as Volkswagen SCANIA and FAW Toyota. The precision die-casting business also secured important clients like ZF, Bosch, and Valeo [2][4]. - The company has increased its R&D investment, leading to successful product iterations and mass production, including the AR-HUD product that covers mainstream technology routes [2][5]. Financial Performance Summary - In 2023, the automotive electronics business generated a revenue of 4.826 billion yuan, a year-on-year increase of 28.85%, while the precision die-casting business achieved a revenue of 1.66 billion yuan, up 25.42% year-on-year [4][12]. - The gross profit margin for 2023 was 22.36%, an increase of 0.26 percentage points year-on-year, while the expense ratio decreased by 0.53 percentage points to 14.67% [12]. - The company forecasts total revenue of 9 billion yuan in 2024, with a year-on-year growth rate of 26%, and net profit attributable to shareholders of 0.638 billion yuan, representing a growth rate of 37% [5][6]. Earnings Forecast - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.22 yuan, 1.58 yuan, and 1.95 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 21, 16, and 13 times [5][6]. - The company expects to maintain a return on equity (ROE) of 10% in 2024, increasing to 12% by 2026 [6][8]. Market Performance - As of March 29, 2024, Huayang Group's stock performance over the past 12 months shows a decline of 22.4%, compared to a decline of 11.7% for the CSI 300 index [4]. - The stock price is currently at 25.58 yuan, with a 52-week price range of 18.45 to 38.85 yuan [10][12].