Chuanhuan Technology(SZ:300547) Southwest Securities·2024-04-23 07:30Investment Rating - The report maintains a "Buy" rating for Chuanhuan Technology (300547) with a current price of 17.37 CNY [1]. Core Views - The company's performance in 2023 met expectations, with a revenue of 1.109 billion CNY, a year-on-year increase of 22.3%, and a net profit of 162 million CNY, up 32.3% year-on-year. The gross margin was 25.8%, an increase of 2.3 percentage points, and the net margin was 14.6%, up 1.1 percentage points. In Q1 2024, revenue reached 299 million CNY, a year-on-year increase of 45.8% [1][2]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 1.109 billion CNY, with a year-on-year growth of 22.3%. The net profit attributable to shareholders was 162 million CNY, reflecting a 32.3% increase year-on-year. The gross margin stood at 25.8%, up 2.3 percentage points, while the net margin was 14.6%, an increase of 1.1 percentage points. For Q1 2024, the revenue was 299 million CNY, a 45.8% increase year-on-year, although it decreased by 17.7% quarter-on-quarter [1][2]. Customer and Market Dynamics - The sales volume of major customers increased in 2023, with notable growth from BYD (+62%), GAC (+39.7%), and Changan (+8.8%). The sales of automotive cooling system hoses decreased by 12.6%, while fuel system hoses increased by 26.7%. The company maintained stable profitability with a Q4 gross margin of 25.4% [2][3]. Growth in New Energy Sector - The proportion of new energy customers rose to 31.6% in 2023, an increase of 4.8 percentage points year-on-year. The company has established long-term partnerships with over 50 automotive manufacturers, including BYD and GAC Aion, which are expected to enhance revenue growth in the new energy sector [3]. Capacity Expansion and New Market Opportunities - The company is expanding its production capacity with a project designed to add 10,000 tons of hose production capacity, with a total designed capacity of 2 billion CNY. The company is also exploring new markets such as energy storage, data centers, and rail transportation, which are expected to contribute to future revenue growth [3]. Earnings Forecast and Valuation - The forecast for EPS from 2024 to 2026 is 1.01 CNY, 1.23 CNY, and 1.43 CNY, respectively, with corresponding PE ratios of 17, 14, and 12 times. The compound annual growth rate (CAGR) for net profit attributable to shareholders is projected at 24.1%, maintaining the "Buy" rating [4].