Investment Rating - The report gives a "Buy" rating for the company with a target price of 68 yuan based on a 40X valuation for 2024 [76]. Core Insights - The company is positioned in the sensor market, particularly focusing on temperature, pressure, and oxygen sensors, with a significant shift towards automotive applications, especially with clients like BYD [15][68]. - The global sensor market is projected to reach a scale of 100 billion USD, with the automotive electronics sector being a major contributor [10][22]. - The company has shown strong revenue growth potential, with expected revenues of 10.2 billion yuan and 13.3 billion yuan for 2024 and 2025, respectively, reflecting a year-over-year growth of 30% [74]. Summary by Sections Financial Forecast and Valuation - The company is expected to achieve net profits of 1.3 billion yuan and 1.8 billion yuan in 2024 and 2025, respectively, with a compound annual growth rate of approximately 41% for net profit from 2023 to 2025 [76]. - The cash flow statement indicates a net profit of 91.71 million yuan in 2023E, increasing to 176.45 million yuan by 2025E [4]. Market Position and Competitors - The company has established partnerships with major automotive manufacturers, including BYD, SAIC, and Great Wall Motors, and is expanding its reach to overseas clients [7][15]. - The pressure sensor market is largely dominated by international companies like Sensata and Bosch, which poses challenges for domestic suppliers [10][52]. Product Development and Technology - The company has developed a range of sensors, including MEMS pressure sensors, which are crucial for meeting the new automotive emission standards [60][63]. - The core technology lies in the ceramic substrate preparation, which is essential for the performance of temperature and pressure sensors [66][91]. Revenue Breakdown - In the first half of 2023, approximately 51% of the company's revenue came from automotive clients, while home appliances contributed 35% [69]. - The revenue from pressure sensors has significantly increased, rising from 0.1 million yuan in 2020 to 1.6 million yuan in the first half of 2023, indicating a growing market share [43].
传感器国产替代先锋，汽车市场有望快速放量