Wuxi Zhenhua(SH:605319) Guohai Securities·2024-04-21 15:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is an experienced parts manufacturer, benefiting from stable development with SAIC passenger vehicles. The main business segments, including automotive parts stamping and welding, are expected to achieve rapid growth due to customer expansion and increased downstream demand [6][9] - The company has optimized its customer structure, with the proportion of new energy sales expected to exceed 50% in 2024, up from 30% in 2023. This shift is anticipated to drive revenue growth [8][9] - The company has established nine production bases, enhancing its ability to support key customers and reduce communication and transportation costs [11] Financial Performance - In 2023, the company achieved revenue of 2.317 billion yuan, a year-on-year increase of 23.19%, and a net profit of approximately 277 million yuan, up 71.23% year-on-year. The net profit margin improved significantly, reaching 11.97% [9][23] - The company forecasts revenues of 2.931 billion, 3.546 billion, and 4.185 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 27%, 21%, and 18% [6][12] - The earnings per share (EPS) are projected to be 1.47, 1.78, and 2.08 yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 13.63, 11.21, and 9.60 [12][26] Market Data - As of April 19, 2024, the company's current stock price is 19.98 yuan, with a market capitalization of approximately 5,004.63 million yuan [2][26] - The stock has a 52-week price range of 13.97 to 25.18 yuan, indicating potential volatility [2]