NJEC(SH:600699) Guoxin Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy" [5][19]. Core Views - The company achieved a net profit attributable to shareholders of 1.083 billion yuan in 2023, representing a year-on-year growth of 175%. The total revenue for 2023 was 55.728 billion yuan, an increase of 11.9% compared to the previous year [6][15]. - The automotive safety business has shown significant improvement in profitability, with the gross margin for the automotive safety segment reaching 12.77%, up 3.6 percentage points year-on-year. The overall gross margin for the company was 15.09%, an increase of 3.1 percentage points [6][7]. - The company has optimized its order structure, securing over 73 billion yuan in new lifetime orders in 2023, with more than 60% of these related to new energy vehicles [12][13]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 55.728 billion yuan, a year-on-year increase of 11.9%. The net profit attributable to shareholders was 1.083 billion yuan, reflecting a growth of 174.8% [6][15]. - The gross margin for the automotive electronics business was 20.65%, up 2.1 percentage points year-on-year, while the automotive safety business achieved a gross margin of 12.77% [6][7]. Business Segments - The automotive electronics segment generated a revenue of 16.8 billion yuan in 2023, growing by 11% year-on-year. The automotive safety segment achieved a revenue of 38.5 billion yuan, also up by 12% [6][15]. - The company is focusing on smart driving and has partnered with various manufacturers to develop domain controllers and central computing units based on different chip platforms [2][14]. Future Outlook - The company maintains its profit forecast for 2024-2025, projecting net profits of 1.366 billion yuan, 1.661 billion yuan, and 2.001 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 26.1%, 21.6%, and 20.5% [15][17]. - The company is expected to benefit from its ongoing investments in R&D and production capacity, particularly in the Chinese market, which is being upgraded to manage the Asia-Pacific region [12][14].