Shanghai YanPu(SH:605128) Huachuang Securities·2024-03-31 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price range of 60.5 to 72.6 CNY, compared to the current price of 49.75 CNY [2][17]. Core Insights - The company has shown significant growth in its core business, particularly in the seat frame segment, benefiting from increased orders from high-quality clients such as BYD and AITO. The revenue from the seat frame business reached 9.2 billion CNY in 2023, a year-on-year increase of 64%, accounting for 60% of total revenue [17]. - The company is expanding into new business areas, including specialized railway containers and high-speed train seats, which are expected to contribute significantly to growth in the coming years [17]. - The financial forecasts indicate a strong growth trajectory, with projected net profits of 1.9 billion CNY, 2.7 billion CNY, and 3.3 billion CNY for 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 112%, 38%, and 25% [17]. Financial Summary - Total revenue for 2023 was 15.2 billion CNY, with a year-on-year growth of 35%, and net profit attributable to shareholders was 0.91 billion CNY, up 99% [17]. - The company’s earnings per share (EPS) are projected to increase from 1.14 CNY in 2023 to 4.17 CNY by 2026, reflecting a strong upward trend in profitability [3][17]. - The average selling price (ASP) of seat frames has increased significantly, from 349 CNY in 2021 to 881 CNY in 2023, indicating a compound annual growth rate (CAGR) of 59% [17].