NJEC(SH:600699) Soochow Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's 2023 annual report shows performance in line with expectations, achieving a revenue of 55.728 billion yuan, a year-on-year increase of 12%, and a net profit attributable to shareholders of 1.08319 billion yuan, a year-on-year increase of 175% [3][4] - The company benefits from a dual-driven model of safety and electronics, with steady revenue growth supported by recovering demand in major global automotive markets and the rapid development of smart electric vehicles [3][4] - Continuous cost reduction and efficiency improvement efforts are yielding scale effects, with a gross margin of 15.09% in 2023, up 3.16 percentage points year-on-year [3][4] Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 55.728 billion yuan, with a year-on-year growth of 12% and a net profit of 1.08319 billion yuan, reflecting a significant increase of 175% [3][4] - The fourth quarter of 2023 saw revenues of 14.4 billion yuan, with a quarter-on-quarter increase of 2.6% and a year-on-year increase of 0.9% [3] - The company forecasts revenues of 60.416 billion yuan for 2024, with a year-on-year growth of 8% [4] Business Segments - The automotive safety segment generated 38.5 billion yuan in revenue, up 12% year-on-year, while the automotive electronics segment achieved 16.8 billion yuan, up 11% year-on-year [3][4] - The company secured new full-lifecycle orders totaling approximately 73.7 billion yuan in 2023, with over 60% of new orders related to new energy vehicles [4] Profitability and Efficiency - The gross margin for the automotive safety business was 12.77%, an increase of 3.63 percentage points year-on-year, while the automotive electronics business achieved a gross margin of 20.65%, up 2.13 percentage points [3][4] - The overall expense ratio for 2023 was 12.31%, with a slight increase of 0.57 percentage points year-on-year [3] Future Outlook - The company expects continued revenue growth, with projected revenues of 67.692 billion yuan in 2025 and 75.759 billion yuan in 2026, reflecting year-on-year growth rates of 12% [4] - The report anticipates a net profit of 2.07812 billion yuan in 2025 and 2.77635 billion yuan in 2026, with corresponding growth rates of 37.32% and 33.60% [4]