Desay SV(SZ:002920) Guoxin Securities·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [1][2][4]. Core Insights - The company achieved a revenue of 21.9 billion yuan in 2023, representing a year-on-year growth of 46.71%, with a net profit of 1.547 billion yuan, up 30.65% year-on-year [1][5]. - In Q4 2023, the company reported a revenue of 7.438 billion yuan, a year-on-year increase of 54.24%, and a net profit of 586 million yuan, up 19.29% year-on-year [1][5]. - The company’s smart cockpit and smart driving products saw significant sales increases, with Q4 revenue growth outpacing the automotive industry's production growth by 31 percentage points [1][11]. - The company has a robust order backlog, with annualized new project orders exceeding 24.5 billion yuan, indicating strong future revenue potential [2][15]. Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 21.908 billion yuan, with a compound annual growth rate (CAGR) of 47.70% from 2020 to 2023 [3][5]. - The net profit for 2023 was 1.547 billion yuan, with a CAGR of 30.57% over the same period [3][5]. - The company’s gross margin for Q4 2023 was 21.5%, with a year-on-year decrease of 0.0 percentage points, while the net margin was 7.8%, down 2.2 percentage points year-on-year [1][11]. Business Segments - The smart cockpit segment generated revenue of 15.802 billion yuan in 2023, growing 34% year-on-year, while the smart driving segment achieved 4.485 billion yuan, a 74.43% increase year-on-year [1][5]. - The company has secured new project orders for its third and fourth generation smart cockpit products from major clients such as Chery and BYD [1][18]. - The smart driving business is expanding rapidly, with new project orders exceeding 8 billion yuan, supported by partnerships with various automotive manufacturers [1][19]. Market Position and Strategy - The company is focusing on enhancing its international presence, having secured new project orders from global clients including AUDI and VOLKSWAGEN [1][20]. - The company’s strategy includes a strong emphasis on research and development, with R&D expenditures amounting to 2.029 billion yuan in 2023, representing 9.26% of sales [21][22]. - The workforce in R&D has increased to 3,886 employees, accounting for 45.26% of the total workforce, indicating a commitment to innovation and product development [21][22].