PIVOT AUTO(SZ:301181) Guotai Junan Securities·2024-04-11 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 29.38, down from the previous target of 38.42 [8][12]. Core Insights - The company achieved a revenue of 571 million in 2023, representing a year-on-year growth of 10.3%, and a net profit of 149 million, which is a 22.8% increase year-on-year [12][22]. - The cooling pipe business, driven by new energy clients, saw a revenue increase of 74% in 2023, contributing to 12% of total revenue [12][22]. - The company has secured multiple new energy projects, with expected sales from these projects accounting for 89.77% of all designated projects, indicating strong growth potential in the new energy sector [12][22]. Financial Summary - Revenue for 2022 was 518 million, with a projected increase to 691 million in 2024, reflecting a growth rate of 21% [22]. - EBIT increased from 120 million in 2022 to 143 million in 2023, with a projected EBIT of 187 million in 2024 [22]. - The net profit for 2022 was 121 million, expected to rise to 162 million in 2024, indicating a growth rate of 9% [22]. Profitability Metrics - The operating profit margin is projected to improve from 25.0% in 2023 to 27.0% in 2024 [22]. - The return on equity (ROE) is expected to increase from 10.6% in 2023 to 11.5% in 2025 [22]. - The company maintains a strong cash flow position, with operating cash flow increasing from 143 million in 2022 to 164 million in 2023 [22].