毛利率改善，新获订单强劲增长

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 26.26 CNY based on a 2024 PE valuation of 26 times [2][4]. Core Views - The company's performance met expectations with Q1 revenue of 13.278 billion CNY, a year-on-year increase of 0.4%, and a net profit attributable to shareholders of 307 million CNY, up 53.1% year-on-year. The non-recurring net profit was 311 million CNY, reflecting a 134.2% year-on-year growth. The implementation of the "profit improvement" plan has led to significant cost reductions and efficiency gains, resulting in improved gross margins [1]. - The gross margin for Q1 was 15.5%, an increase of 2.5 percentage points year-on-year, while the expense ratio remained stable at 11.8%. The operating cash flow for Q1 was 693 million CNY, a 9.2% increase year-on-year [1]. - The automotive electronics business remained stable, with Q1 revenue of approximately 4 billion CNY and a gross margin of about 19.4%. The company secured new orders totaling approximately 29.8 billion CNY, with a strong focus on new energy vehicles, which accounted for about 77% of new orders [1]. - The automotive safety business saw a significant improvement in gross margin, reaching 13.9%, an increase of 3.8 percentage points year-on-year, with Q1 revenue of approximately 9.3 billion CNY, a year-on-year growth of 1.4% [1]. Financial Summary - The company’s projected earnings per share (EPS) for 2024-2026 are 1.01 CNY, 1.15 CNY, and 1.24 CNY respectively. The revenue is expected to grow from 60.938 billion CNY in 2024 to 70.049 billion CNY in 2026, with corresponding net profits of 1.418 billion CNY and 1.750 billion CNY [2][3]. - The gross margin is projected to improve slightly from 15.3% in 2024 to 15.4% in 2026, while the net profit margin is expected to increase from 2.3% to 2.5% over the same period [3].