CAERI(SH:601965) China Post Securities·2024-04-28 03:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within the next six months [10][13]. Core Insights - The company has shown significant growth in its new energy and intelligent connected vehicle testing business, with a 21.76% year-on-year increase in revenue for 2023, reaching 4.007 billion yuan, and a net profit increase of 19.75% to 825 million yuan [5][6]. - The first quarter of 2024 also demonstrated strong performance, with revenue of 861 million yuan, up 21.83% year-on-year, and a net profit of 164 million yuan, reflecting a 15.24% increase [5][7]. - The company benefits from the growing demand for testing services in the automotive industry's transition towards electrification and intelligence, with a notable 34.17% revenue growth in the new energy and intelligent connected vehicle development and testing segment in 2023 [6][9]. Summary by Sections Financial Performance - In 2023, the company achieved revenues of 4.007 billion yuan, with a net profit of 825 million yuan, and a gross margin of 42.96% [5][6]. - For 2024, the revenue forecast has been adjusted to 4.436 billion yuan, with a net profit expectation of 957 million yuan, reflecting a growth rate of 10.71% and 15.98% respectively [10][12]. Business Segments - The automotive technology services segment generated 3.31 billion yuan in revenue in 2023, growing by 19.11%, while the specialized vehicle segment saw a remarkable 74.57% increase [6]. - The equipment manufacturing segment's revenue increased by 44.41% in Q1 2024, indicating a recovery trend [7]. Market Position and Strategy - The company is positioned as a rare A-share entity with comprehensive automotive certification qualifications, benefiting from the industry's shift towards electrification, intelligence, low carbon, and internationalization [8][9]. - The integration of testing and certification services is expected to enhance competitive advantages, supported by the capabilities of its controlling shareholder, China Inspection and Certification Group [9].