Harmontronics Automation(SH:688022) Huaxin Securities·2024-04-26 07:30Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [1][3]. Core Insights - The company reported a significant increase in revenue and profit for Q1 2024, with revenue reaching 267 million yuan, a year-on-year increase of 46.81%, and a net profit of 12 million yuan, up 128.12% year-on-year [1]. - The automotive and new energy vehicle sectors continue to show growth, with China's automotive production and sales in 2023 reaching 30.16 million and 30.09 million units, respectively, representing year-on-year growth of 11.6% and 12% [1]. - The company is benefiting from the rising demand in the electric vehicle and lithium battery sectors, which is expected to drive revenue growth in equipment sales [1]. - The company has established partnerships with major clients in the automotive sector, including Yazaki Group and Kyocera Group, and has launched new products in the battery equipment field [1]. - The company is focused on enhancing its delivery capacity through expansion projects, which are progressing well, including the construction of smart battery swap equipment and smart automotive component production facilities [1]. Financial Projections - The company is projected to achieve revenues of 1.562 billion yuan, 1.844 billion yuan, and 2.160 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 0.30 yuan, 0.40 yuan, and 0.51 yuan [3][5]. - The current stock price corresponds to a PE ratio of 42.9, 32.5, and 25.8 for the years 2024, 2025, and 2026, respectively [3].