Desay SV(SZ:002920) Orient Securities·2024-04-06 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 145.55 CNY [3]. Core Insights - The company's 2023 revenue reached 21.908 billion CNY, a year-on-year increase of 46.7%, with a net profit attributable to shareholders of 1.547 billion CNY, up 30.6% [1][2]. - The fourth quarter saw a revenue of 7.438 billion CNY, representing a 54.2% year-on-year growth and a 29.4% quarter-on-quarter increase [1]. - The company plans to distribute a dividend of 8.4 CNY per 10 shares for 2023 [1]. Financial Performance - The gross margin for 2023 was 20.4%, a decrease of 2.6 percentage points year-on-year, while the fourth quarter gross margin improved to 21.5% [1]. - Operating cash flow for 2023 was 1.141 billion CNY, an increase of 87.2% year-on-year, attributed to increased sales collections [1]. - The company reported a 12.9% expense ratio for 2023, down 2.4 percentage points year-on-year [1]. Business Segments - The smart cockpit business generated 15.802 billion CNY in revenue, a 34.4% increase year-on-year, with a gross margin of 20.6% [1]. - The smart driving and connected services segments saw revenues of 4.485 billion CNY and 1.621 billion CNY, respectively, with year-on-year growth rates of 74.4% and 167.4% [1]. - The company secured new project orders from over 10 automotive manufacturers, including Li Auto and Aion, contributing to a projected annual sales of over 80 billion CNY for the smart driving segment [1]. Earnings Forecast - The report adjusts revenue and profit forecasts, projecting EPS for 2024-2026 to be 3.55 CNY, 4.49 CNY, and 5.65 CNY respectively [1][2]. - The average PE ratio for comparable companies in the automotive electronics and components sector is estimated at 41 times for 2024 [1].