热管理业务高增，盈利能力持续改善

Investment Rating - The investment rating for the company is "Buy - A" with a target price of 15.58 CNY over the next six months [1][2]. Core Insights - The company, Shun'an Environment, is a leading player in the refrigeration components industry, actively expanding into refrigeration equipment and thermal management for new energy vehicles, which is expected to enhance profitability [2]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.87 CNY, 1.01 CNY, and 1.23 CNY respectively, maintaining the "Buy - A" rating [2]. - The company reported a revenue of 113.8 billion CNY in 2023, a year-on-year increase of 11.5%, and a net profit of 7.4 billion CNY, a decrease of 11.5% year-on-year [8][9]. Financial Performance Summary - Revenue growth is expected to continue, with projected revenues of 127.9 billion CNY in 2024, 146.3 billion CNY in 2025, and 168.0 billion CNY in 2026 [4]. - The net profit is forecasted to rise to 9.2 billion CNY in 2024, 10.8 billion CNY in 2025, and 13.2 billion CNY in 2026 [4]. - The company’s gross profit margin improved in Q4 2023, with a net profit margin of 6.7% and 7.9% in Q1 2024, reflecting a positive trend in profitability [10]. Market Dynamics - The demand for refrigeration components is expected to improve due to a recovery in the air conditioning market, with a year-on-year increase of 17.0% in air conditioning sales in Q1 2024 [9]. - The automotive thermal management business is experiencing high growth, with a reported year-on-year increase of 128.6% in H2 2023 [9]. - The company has established itself as a supplier for major automotive manufacturers, including BYD and Geely, which is anticipated to drive revenue growth [9]. Cash Flow and Efficiency - The operating cash flow for Q1 2024 showed significant improvement, with a net cash flow of 0.7 billion CNY compared to -1.7 billion CNY in the same period last year [10]. - The company’s financial metrics indicate a positive trend in operational efficiency, with a decrease in accounts receivable impairment losses and improved cash collection from sales [10].