Orient Securities·2024-04-07 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's performance slightly missed market expectations, with 2023 revenue of 128.76 billion yuan, a year-on-year increase of 17.5%, and a net profit attributable to the parent company of 4.43 billion yuan, a year-on-year decrease of 45.1% [5] - The decline in profit for 2023 is primarily attributed to aggressive business policies in response to industry price wars and restructuring costs related to GAC Mitsubishi [5] - The company plans to distribute a final cash dividend of 1 yuan per share to all shareholders [5] - The gross margin for 2023 was 6.9%, a slight decrease from the previous year, with the fourth quarter gross margin also under pressure due to intensified industry competition [5] - The company reported a significant improvement in operating cash flow, with a net cash flow from operating activities of 6.73 billion yuan, an increase of 12.08 billion yuan year-on-year [5] - Investment income decreased by 39.5% year-on-year, primarily due to pressure on joint venture brand sales [5] - GAC's self-owned brands showed a reduction in losses, with Aion's sales growing significantly [5] Financial Summary - Revenue projections for 2024-2026 are 150.80 billion yuan, 174.44 billion yuan, and 201.73 billion yuan respectively, with year-on-year growth rates of 17.1%, 15.7%, and 15.6% [4][10] - The net profit attributable to the parent company is projected to be 5.76 billion yuan in 2024, 6.48 billion yuan in 2025, and 7.02 billion yuan in 2026, with corresponding year-on-year growth rates of 30.1%, 12.4%, and 8.4% [4][10] - The earnings per share (EPS) for 2024-2026 are forecasted to be 0.55 yuan, 0.62 yuan, and 0.67 yuan respectively [5][10] - The company maintains a price-to-earnings (P/E) ratio of 15.8 for 2024, with a target price of 9.35 yuan [5][10] Market Performance - The stock price as of April 3, 2024, is 8.7 yuan, with a 52-week high of 11.79 yuan and a low of 7.72 yuan [1] - The company's market capitalization is approximately 91.24 billion yuan [1]