HOP(SH:603319) Tianfeng Securities·2024-04-25 10:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 28.52 CNY, representing an expected return of over 20% within the next six months [31][32]. Core Insights - The company is a leading player in the domestic engine lubrication and cooling pump sector, actively promoting its transition to new energy [1][45]. - The company reported a revenue of 1,940.90 million CNY in 2023, a year-on-year increase of 19.48%, and a net profit attributable to shareholders of 225.74 million CNY, up 33.11% year-on-year [1][34]. - The company has significantly increased its R&D investment over the past six years, focusing on expanding its presence in the new energy market, which has shown remarkable growth [1][50]. Summary by Sections 1. Company Overview - The company specializes in the research, manufacturing, and sales of key engine component pumps, with core products like variable displacement pumps achieving international advanced levels [45]. - The company has established a strong partnership with BYD, a leader in hybrid vehicles, which is expected to drive revenue growth [46][67]. 2. Variable Displacement Pump Business - The variable displacement pump technology is recognized for its energy-saving advantages and is a core component of hybrid vehicle power systems [2]. - The company has secured stable cooperation with BYD, which is anticipated to lead to sustained growth in sales of variable displacement pump products [2][31]. 3. Electronic Oil Pump Demand - The demand for electronic oil pumps is rapidly increasing, driven by their high efficiency and integration advantages, making them a mainstream choice in the pure electric vehicle industry [3]. - The company has successfully mass-produced electronic oil pump products and has gained notable clients such as Changan Automobile and Dongfeng [3][31]. 4. Future Outlook - The report highlights the trend towards "fully electric" systems, with the integration of electric drive systems expected to reduce component count and improve efficiency [10]. - The company is positioned to benefit from the growing demand for electronic oil pumps as the automotive industry shifts towards higher voltage platforms [28]. 5. Financial Projections - The company is projected to achieve net profits of 226 million CNY, 257 million CNY, and 310 million CNY for the years 2023, 2024, and 2025, respectively [31][34]. - The report anticipates a significant valuation shift as the company transitions from traditional fuel vehicles to a stronger focus on new energy vehicles [31].