Hwaway Technology(SZ:001380)2024-04-09 16:00Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company's net profit for 2023 reached 1.64 billion yuan, close to the upper limit of the performance forecast, with a year-on-year increase of 45.59%. The growth in profitability is driven by both revenue and gross margin increases [1][3]. - The company's revenue for 2023 was 12.43 billion yuan, representing a year-on-year growth of 39.63%. The main product, suspension springs, generated revenue of 7.52 billion yuan, with a gross margin of 30.51%, up 4.87 percentage points year-on-year [1][3]. - The company has successfully implemented a "key customer" strategy, establishing deep partnerships with leading domestic brands, which has led to significant sales growth. In 2023, sales to major customers like BYD and Geely accounted for 38.7% and 13.35% of total revenue, respectively [1][3]. Financial Summary - The company achieved a revenue of 12.43 billion yuan in 2023, with projected revenues of 15.93 billion yuan, 19.35 billion yuan, and 22.42 billion yuan for 2024, 2025, and 2026, respectively [3]. - The net profit for 2023 was 164.07 million yuan, with forecasts of 212.96 million yuan, 262.53 million yuan, and 307.16 million yuan for the following three years [3]. - The gross margin for 2023 was 27.38%, with slight fluctuations expected in the coming years, projected at 27.10% for 2024 and 27.20% for 2025 [3]. Key Financial Metrics - The diluted EPS for 2023 was 1.27 yuan, with projections of 1.65 yuan, 2.04 yuan, and 2.38 yuan for the next three years [3]. - The company’s PE ratio is expected to decrease from 21.60 in 2023 to 11.54 by 2026, indicating an improving valuation as earnings grow [3]. - The company’s cash flow from operating activities for 2023 was 43.50 million yuan, with significant increases projected in the following years [3].