PIVOT AUTO(SZ:301181) Guotou Securities·2024-04-25 00:30Investment Rating - The report maintains a "Buy - A" rating for the company, with a target price of 30.6 CNY per share over the next six months, based on a projected PE of 20 times for 2024 [3][22]. Core Views - The company is expected to achieve significant growth driven by multiple factors, including the expansion of the nylon pipeline market in the new energy vehicle sector, the acquisition of new customers, and the growth of overseas business [2][19]. - The company's Q1 2024 performance shows a slight year-on-year revenue decline of 1.02% but a net profit increase of 4.95%, indicating improved profitability [17][18]. Financial Summary - For Q1 2024, the company reported revenue of 1.25 billion CNY and a net profit of 0.33 billion CNY, with a gross margin of 34.81% [17][18]. - The projected net profits for 2024, 2025, and 2026 are 1.8 billion CNY, 2.2 billion CNY, and 2.6 billion CNY, respectively, with corresponding PE ratios of 14.2, 11.8, and 9.6 [3][21]. - The company’s financial metrics include a net profit margin of 23.4% and a return on equity (ROE) of 9.2% for 2022, with expectations for improvement in subsequent years [4][21].