KSHG(SH:605333) KAIYUAN SECURITIES·2024-04-28 11:00Investment Rating - Investment Rating: Buy (Maintain) [2][17] Core Views - The company, Hu Guang Co., Ltd. (605333.SH), is positioned as a leading domestic harness manufacturer benefiting from the electrification trend, with Q1 2024 performance exceeding expectations [1][18] - In Q1 2024, the company achieved revenue of 1.533 billion yuan, a year-on-year increase of 134.12%, and a net profit attributable to shareholders of 101 million yuan, reflecting a significant year-on-year growth of 504.60% [2][18] - The company's gross margin in Q1 2024 was 13.96%, an increase of 3.23 percentage points year-on-year, driven by increased order volume and improved factory utilization rates [2][18] Financial Performance - 2023 revenue reached 4.003 billion yuan, a year-on-year growth of 22.11%, with a net profit of 54 million yuan [2][4] - Revenue projections for 2024-2026 are 6.921 billion yuan, 8.841 billion yuan, and 11.886 billion yuan respectively, with corresponding net profits of 471 million yuan, 621 million yuan, and 820 million yuan [4][17] - The company's EPS for 2024-2026 is projected to be 1.08 yuan, 1.42 yuan, and 1.88 yuan, with P/E ratios of 25.0, 19.0, and 14.3 respectively [4][17] Product Development - The company is optimizing its product structure by focusing on high-voltage and special harnesses, which are expected to grow with the ongoing electrification of vehicles [3][18] - The company is expanding its customer base in the new energy sector, supplying major automotive manufacturers such as Volkswagen, General Motors, and others [3][18]