SHUANGHUAN COMPANY(002472) 国信证券·2024-04-18 01:00Investment Rating - Buy rating maintained for Shuanghuan Transmission (002472 SZ) [1][4][15] Core Views - Shuanghuan Transmission achieved a 40 3% YoY increase in net profit in 2023, driven by product diversification and global expansion [1] - The company's revenue reached 8 07 billion yuan in 2023, up 18 1% YoY, with net profit attributable to shareholders of 820 million yuan, up 40 3% YoY [1][5] - New energy vehicle transmission gear products contributed 22 3 billion yuan, accounting for 27 6% of total revenue [1][5] - The company's gross margin in Q4 2023 was 24 6%, up 2 1 pct YoY and 2 9 pct QoQ, while net margin was 10 0%, up 1 6 pct YoY [1][5] - Shuanghuan Transmission has repurchased 7,339,400 shares, representing 0 86% of total shares, demonstrating management confidence [1][5] Financial Performance - In Q4 2023, revenue was 2 2 billion yuan, up 9 4% YoY and 0 8% QoQ, with net profit attributable to shareholders of 230 million yuan, up 31 5% YoY [1][5] - The company's sales/management/R&D/financial expense ratios in Q4 2023 were 1 2%/4 9%/5 5%/0 5%, respectively [1][5] - Shuanghuan Transmission's heavy-duty truck automatic transmission gear business and new energy vehicle gear business showed strong growth [1][5] - The company's new energy vehicle drive gear production capacity reached 5 million units, with new energy sales accounting for 27 6% of total revenue [5] Strategic Outlook - Shuanghuan Transmission is advancing its globalization strategy, with a 120 million euro investment in a Hungarian production base [1][14] - The company is expanding its product matrix, including gear-related products for smart home and automotive applications [8] - Shuanghuan Transmission is transitioning from OEM to ODM services, offering customized design and manufacturing solutions [8] - The company aims to build a flexible and efficient intelligent production line to shorten product development and manufacturing cycles [8] Industry Position - Shuanghuan Transmission holds over 70% market share in China's high-power pure electric vehicle market [12] - The company has established a comprehensive high-precision gear supply matrix, including vehicle gears, robot reducers, and other industrial gears [12] - Shuanghuan Transmission's core competencies include product consistency, batch supply capability, and rapid response speed [12] Global Expansion - Shuanghuan Transmission's overseas revenue in 2023 was 1 1 billion yuan, up 17% YoY, with a gross margin of 25 0%, up 5 1 pct YoY [14] - The company is actively developing overseas supply chains and sales channels, with a focus on the European market [10] - Shuanghuan Transmission has established partnerships with global leading electric vehicle manufacturers and suppliers [10][11] Financial Projections - Revenue is projected to reach 9 55 billion yuan in 2024, 11 30 billion yuan in 2025, and 13 31 billion yuan in 2026 [2] - Net profit is expected to be 1 045 billion yuan in 2024, 1 353 billion yuan in 2025, and 1 621 billion yuan in 2026 [2][15] - EPS is forecasted to be 1 22 yuan in 2024, 1 59 yuan in 2025, and 1 90 yuan in 2026 [2][15]