RAYHOO MOTOR DIES(SZ:002997) Guoyuan Securities·2024-04-26 09:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 36.15 CNY, indicating an expected price increase of over 20% within the next six months [4][12]. Core Insights - The company has shown significant growth in revenue and profit, with 2023 revenue reaching 1.877 billion CNY, a year-on-year increase of 60.73%, and a net profit of 202.26 million CNY, up 44.42% year-on-year [6][8]. - The company is focusing on expanding its manufacturing capabilities, with new production lines for lightweight components and aluminum alloy products entering stable production phases [3][7]. - The company has successfully secured key contracts for major vehicle model upgrades, indicating strong demand from leading domestic and international automotive brands [7]. Financial Performance - The projected revenues for 2024, 2025, and 2026 are 2.721 billion CNY, 3.475 billion CNY, and 4.249 billion CNY, respectively, with corresponding net profits of 299.52 million CNY, 386.23 million CNY, and 479.04 million CNY [3][8]. - The earnings per share (EPS) are expected to be 1.43 CNY, 1.85 CNY, and 2.29 CNY for the years 2024, 2025, and 2026, respectively, with price-to-earnings (P/E) ratios of 20, 16, and 13 [3][8]. - The company reported a return on equity (ROE) of 11.88% in 2023, projected to increase to 14.34% in 2024 [8][11]. Market Position and Strategy - The company is strategically targeting top domestic traditional brands and new automotive players, as well as localization efforts in countries along the Belt and Road Initiative [7]. - The company has been expanding its production capacity, with new factories for intelligent molds and high-strength plate molds expected to be operational by 2024 [7][8].