KSHG(SH:605333) Southwest Securities·2024-04-28 07:00Investment Rating - The report maintains a "Buy" rating for the company [4][8]. Core Views - The company reported a revenue of 4.003 billion yuan for the full year 2023, representing a year-on-year increase of 22.1%, and a net profit attributable to shareholders of 54 million yuan, up 32.2% year-on-year [2]. - In Q1 2024, the company achieved a revenue of 1.533 billion yuan, a significant year-on-year increase of 134%, while the net profit attributable to shareholders reached 101 million yuan, reflecting a year-on-year growth of 505% [2]. - The company's gross margin improved to 14% in Q1 2024, up 3.3 percentage points year-on-year, driven by increased sales and a higher proportion of high-voltage wiring harnesses [9]. Summary by Sections Financial Performance - For 2023, the company achieved a revenue of 4,002.75 million yuan and a net profit of 54.10 million yuan, with respective growth rates of 22.11% and 31.73% [5]. - The forecast for EPS from 2024 to 2026 is 1.05, 1.32, and 1.62 yuan, with corresponding PE ratios of 23, 19, and 15 [4][5]. Product and Market Development - The company has enhanced its production capabilities with automated high-voltage wiring harness production lines, which are now being utilized by major clients such as L Automotive and T Company [3]. - Sales of various wiring harness products have seen significant growth, with complete harness sales increasing by 25.4% year-on-year [3]. Industry Outlook - The shift towards electric vehicles is expected to increase the value of wiring harnesses per vehicle, with the average value for electric vehicles exceeding 5,000 yuan compared to 3,000 yuan for traditional fuel vehicles [10]. - The domestic market is witnessing a trend towards localization in automotive parts procurement, providing substantial opportunities for domestic wiring harness manufacturers [10].