KSHG(SH:605333) Minsheng Securities·2024-04-26 04:30Investment Rating - The report maintains a "Recommended" rating for the company [4][13]. Core Insights - The company has shown a significant revenue increase, with 2023 revenue at 4,003 million yuan, projected to grow to 7,615 million yuan in 2024, representing a growth rate of 90.25% [15]. - The net profit attributable to shareholders is expected to rise from 54 million yuan in 2023 to 506 million yuan in 2024, indicating a substantial growth rate of 835.45% [15]. - The company is positioned to benefit from the increasing demand in the electric vehicle sector, with a projected market size for wire harnesses in China reaching 130.7 billion yuan by 2025 [13]. Financial Performance Summary - Revenue: 2023 revenue is 4,003 million yuan, with projections of 7,615 million yuan in 2024, 10,161 million yuan in 2025, and 12,701 million yuan in 2026 [15]. - Net Profit: The net profit for 2023 is 54 million yuan, expected to increase to 506 million yuan in 2024, 712 million yuan in 2025, and 915 million yuan in 2026 [15]. - Earnings Per Share (EPS): EPS is projected to rise from 0.12 yuan in 2023 to 1.16 yuan in 2024, 1.63 yuan in 2025, and 2.09 yuan in 2026 [15]. - Valuation Ratios: The price-to-earnings (PE) ratio is expected to decrease from 198 in 2023 to 21 in 2024, 15 in 2025, and 12 in 2026 [15]. Market Position and Growth Potential - The company is a key supplier for the AITO brand, with successful mass production of high and low voltage wire harnesses for models M5, M7, and M9, which is expected to enhance revenue and market share [13]. - The transition to smart electric vehicles is driving demand for wire harnesses, with the average value of wire harnesses in electric vehicles projected to reach 5,000 yuan [13]. - The company is actively expanding its customer base, having passed supplier qualification audits for several automotive manufacturers, which will support future growth [13].