KEBODA(SH:603786) ZHONGTAI SECURITIES·2024-04-23 01:30Investment Rating - The investment rating for the company is "Buy" (maintained) with a market price of 65.29 CNY [1]. Core Views - The company reported a revenue of 4.625 billion CNY in 2023, representing a year-on-year growth of 36.68%, and a net profit of 609 million CNY, up 35.26% year-on-year. In Q1 2024, revenue reached 1.417 billion CNY, a 55.22% increase year-on-year, with a net profit of 219 million CNY, growing 66.24% year-on-year [3][4]. - The company is experiencing high growth driven by both new and existing businesses, with significant contributions from automotive industry recovery and increased market demand. The revenue from various segments, including lighting control systems and motor control systems, has shown stable growth, while new business areas like domain controllers have seen rapid expansion [3][4]. - The company has a robust pipeline of projects, having secured 73 new projects from major clients like BMW, Audi, and Ford, with an expected lifetime sales volume exceeding 100 million units. The establishment of a production base in Japan and ongoing global expansion efforts are expected to enhance its market presence [4][7]. Financial Summary - The company's financial projections indicate a revenue increase from 4.625 billion CNY in 2023 to 9.450 billion CNY by 2026, with corresponding net profits expected to rise from 609 million CNY to 1.381 billion CNY over the same period. The earnings per share (EPS) is projected to grow from 1.51 CNY in 2023 to 3.42 CNY in 2026 [1][9]. - The company maintains a healthy financial position with a projected return on equity (ROE) increasing from 13% in 2023 to 17% by 2026, and a price-to-earnings (P/E) ratio decreasing from 43.3 in 2023 to 19.1 in 2026, indicating improved valuation metrics [1][9].