FORYOU(SZ:002906) Southwest Securities·2024-04-07 16:00Investment Rating - The report maintains a "Buy" rating for Huayang Group (002906) with a current price of 27.42 CNY and a target price not specified for the next six months [1]. Core Insights - The company's performance met expectations, with significant growth in automotive electronics and a continuous expansion of customer base, particularly in the new energy vehicle sector [2][12]. - Revenue for automotive electronics reached 4.826 billion CNY in 2023, representing a year-on-year increase of 28.9%, with sales volume growing by 30.4% to 9.39 million units [2]. - The company has made substantial investments in research and development, with R&D expenses amounting to 645 million CNY in 2023, a 24.8% increase year-on-year, marking a historical high [3]. Summary by Sections Financial Performance - In 2023, Huayang Group achieved total revenue of 7.137 billion CNY, a year-on-year increase of 26.6%, and a net profit attributable to shareholders of 465 million CNY, up 22.2% [12]. - The gross margin for 2023 was 22.36%, an increase of 0.26 percentage points year-on-year, while the net margin was 6.58%, a decrease of 0.24 percentage points [12]. Business Segments - The precision casting segment reported revenue of 1.66 billion CNY in 2023, growing by 25.4% year-on-year, driven by increased sales of automotive intelligent components [13]. - The company is expanding its production capacity, with fixed asset investments reaching a historical high in 2023 to meet growing order demands [3]. Future Projections - The report forecasts that the company's earnings per share (EPS) will be 1.24 CNY in 2024, 1.52 CNY in 2025, and 1.84 CNY in 2026, with a compound annual growth rate (CAGR) for net profit attributable to shareholders of 27.5% [14][15]. - Revenue projections for automotive electronics are expected to grow from 4.826 billion CNY in 2023 to 6.258 billion CNY in 2024, reflecting a growth rate of 29.67% [9].