Desay SV(SZ:002920) Xinda Securities·2024-04-08 16:00Investment Rating - The investment rating for the company is not explicitly stated in the provided content, but the report indicates a positive outlook based on revenue and profit growth [1]. Core Viewpoints - The company achieved a revenue of 21.91 billion yuan in 2023, representing a year-on-year increase of 46.7%, and a net profit attributable to shareholders of 1.55 billion yuan, up 30.6% year-on-year [1]. - The company’s gross profit margin for 2023 was 20.4%, a decrease of 2.6 percentage points year-on-year, while the net profit margin was 7.04%, down 0.8 percentage points year-on-year [1]. - The company has three main business drivers: smart cockpit, intelligent driving, and connected services, which contributed to record revenue growth [1]. - The company has made significant progress in international markets, securing new project orders from major clients such as AUDI, VOLKSWAGEN, and STELLANTIS [1]. Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 7.44 billion yuan, a year-on-year increase of 54.2%, and a net profit of 586 million yuan, up 19.3% year-on-year [1]. - The company’s revenue from the smart cockpit business was 15.80 billion yuan, up 34.42% year-on-year, driven by the mass production of third-generation high-performance smart cockpit products [1]. - The intelligent driving business generated 4.49 billion yuan in revenue, a year-on-year increase of 74.43%, primarily from the scale launch of advanced intelligent driving solutions [1]. - The connected services business achieved revenue of 1.62 billion yuan, a significant increase of 167.39% year-on-year [1]. Cost and Efficiency - The company’s management, sales, and R&D expense ratios for 2023 were 2.3%, 1.4%, and 9.1%, respectively, showing a decrease compared to the previous year [1]. - The report indicates that the company’s operating efficiency is improving, with the potential for continued profit margin recovery in the future [1]. Market Expansion - The company has successfully expanded its international market presence, establishing a global service system and securing new clients across Europe, Southeast Asia, Japan, and North America [1]. - The report highlights the company’s strong development momentum in technology and product areas, which is expected to enhance its client base and market balance [1]. Profit Forecast - The company is projected to benefit from increasing recognition and penetration of intelligent technologies, with expected net profits of 2.14 billion yuan, 2.74 billion yuan, and 3.83 billion yuan for 2024, 2025, and 2026, respectively [2]. - Corresponding EPS estimates for the same years are 3.86 yuan, 4.93 yuan, and 6.91 yuan, with P/E ratios of 34.81, 27.27, and 19.47 [2].