Appo(SH:688007) ZHONGTAI SECURITIES·2024-04-13 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in the stock price compared to the benchmark index within the next 6 to 12 months [4][10]. Core Insights - The company is divesting its stake in GDC, which has been underperforming and has incurred losses, to mitigate the negative impact on its overall performance. The divestment is expected to help control the risks associated with GDC's ongoing losses [5][15]. - The company is focusing on optimizing its asset structure and enhancing the quality of its growth, particularly in its core business areas. The automotive sector is highlighted as a key growth driver, with significant revenue contributions expected from new partnerships and product launches [6][19]. - The financial forecasts indicate a decline in revenue for 2023, followed by a recovery in subsequent years, with projected revenues of 2,199 million in 2023, 2,558 million in 2024, and 3,016 million in 2025 [4][20]. Financial Summary - The company has a total share capital of 463 million shares, with a market price of 19.66 yuan and a market capitalization of 91 billion yuan [1]. - Revenue growth rates are projected to be -13% in 2023, followed by 16% in 2024 and 18% in 2025. Net profit is expected to recover from 102 million in 2023 to 298 million in 2025 [4][20]. - The company's net asset return is forecasted to improve from 4% in 2023 to 10% in 2025, indicating a positive trend in profitability [4].