Desay SV(SZ:002920) Soochow Securities·2024-04-21 06:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a strong revenue growth of 42% year-on-year in Q1 2024, but profits faced slight pressure, resulting in overall performance below expectations [3] - Revenue growth was primarily driven by increased sales from key clients, with significant year-on-year increases from major customers such as Li Auto (+44%), Geely (+55%), and Chery (+88%) [3] - The company is expected to benefit from new project launches throughout 2024, particularly with the updated L series models from Li Auto and new clients in the intelligent driving sector [3] - Gross margin faced pressure due to changes in product mix, with a gross margin of 19.3% in Q1 2024, down 1.8 percentage points year-on-year [3] - The company is positioned as a leader in intelligent driving components and is expected to benefit from the industry's growth, with new project orders projected to generate annual sales of over 24.5 billion [3] Financial Forecasts and Valuation - Revenue forecasts for 2024-2026 are set at 285 billion, 369 billion, and 462 billion respectively, with year-on-year growth rates of 30% for 2024 and 2025, and 25% for 2026 [4] - Net profit forecasts for the same period are 22.9 billion, 30.8 billion, and 39.6 billion respectively, with growth rates of 48% for 2024, 34% for 2025, and 29% for 2026 [4] - The corresponding P/E ratios are projected to be 29, 21, and 17 for 2024, 2025, and 2026 respectively [4]