CAIP(SH:603035) Huachuang Securities·2024-04-19 07:31Investment Rating - The report maintains a "Strong Buy" rating for Changshu Automotive Trim (603035) with a target price of 21.1 CNY, indicating a potential upside of 35% from the current price of 15.58 CNY [11]. Core Insights - The company reported a net profit attributable to shareholders of 1.6 billion CNY in Q4 2023, a year-on-year increase of 14% and a quarter-on-quarter increase of 5.1%. For the entire year of 2023, the net profit reached 5.5 billion CNY, up 6.7% year-on-year [11]. - Revenue in Q4 2023 was driven by major clients such as Chery and Volkswagen, with a total revenue of 15 billion CNY, reflecting a 40% year-on-year increase and a 23% quarter-on-quarter increase [11]. - The company has diversified its customer base, covering luxury brands, traditional joint ventures, and new energy vehicle manufacturers, with 33% of sales coming from new energy vehicles in 2023 [11]. - The company is expanding its production capacity and has secured contracts with well-known luxury brands, indicating potential for future growth [11]. Financial Summary - The projected financials for Changshu Automotive Trim are as follows: - Total revenue for 2023 is 4,599 million CNY, with a year-on-year growth rate of 25.5% - Net profit for 2023 is 546 million CNY, with a year-on-year growth rate of 6.7% - Earnings per share (EPS) for 2023 is 1.44 CNY [11]. - Forecasts for 2024-2026 indicate continued growth, with net profits expected to reach 6.7 billion CNY in 2024, 8.2 billion CNY in 2025, and 10.3 billion CNY in 2026, representing year-on-year growth rates of 22%, 23%, and 26% respectively [11].