FORYOU(SZ:002906) Guotai Junan Securities·2024-04-28 02:32Investment Rating - The investment rating for Huayang Group (002906) is "Buy" with a target price of 39.96 CNY, maintaining the previous rating of "Buy" [2][8]. Core Insights - The report highlights significant year-on-year growth in performance, with Q1 revenue reaching 1.99 billion CNY, a 51.3% increase year-on-year and an 83.5% increase quarter-on-quarter. The net profit attributable to shareholders was 140 million CNY, reflecting an 89.3% year-on-year increase [8]. - The company is entering a phase of volume growth with new business and customer resonance, particularly in automotive electronics, which is expected to see substantial growth [8]. - The report emphasizes the successful cost reduction measures and the significant progress in product iteration and order expansion, particularly in the new energy vehicle sector [8]. Financial Summary - Revenue for 2022 was 5,638 million CNY, projected to grow to 8,600 million CNY in 2024 and 10,206 million CNY in 2025 [4][8]. - The EBIT for 2022 was 322 million CNY, expected to rise to 593 million CNY in 2024 and 791 million CNY in 2025 [4][8]. - The net profit attributable to shareholders for 2022 was 380 million CNY, with projections of 584 million CNY in 2024 and 776 million CNY in 2025 [4][8]. - The report indicates a gross margin of 21.6% for Q1, with a notable decrease in expense ratios compared to the previous year [8]. Performance Metrics - The report notes a return on equity (ROE) of 9.1% for 2022, expected to remain stable in 2024, and a return on invested capital (ROIC) of 7.9%, projected to increase to 8.8% in 2024 [4][8]. - The company's debt-to-asset ratio is reported at 39.7%, indicating a moderate level of leverage [4][8]. - The price-to-earnings (P/E) ratio is noted at 40.80 for 2022, with a projected decrease to 26.60 in 2024 [4][8].