CH AUTO(605018) 东吴证券·2024-04-28 14:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 2.422 billion yuan in 2023, an increase of 31.96% year-on-year, while the net profit attributable to shareholders was 109 million yuan, a slight decrease of 0.27% year-on-year. The first quarter of 2024 showed a revenue of 586 million yuan, representing a year-on-year increase of 52.99% [1][2] - The revenue from new energy vehicle components significantly increased, accounting for 12.8% of total revenue in 2023, with sales of approximately 310 million yuan, up from 158 million yuan in 2022. The company established stable partnerships with nearly 30 automotive manufacturers in the new energy sector [2] - The company's gross margin for 2023 was 12.80%, a decrease of 2.19 percentage points year-on-year, primarily due to the lower gross margin of the welding parts business, which was at 6.16% [3] - The first quarter of 2024 saw a gross margin of 13.8%, an increase of 1.0 percentage points year-on-year, driven by capacity ramp-up and declining raw material prices [4] - The company expects revenue for 2024-2026 to be 2.62 billion, 3.01 billion, and 3.47 billion yuan respectively, with net profits projected at 190 million, 240 million, and 300 million yuan, reflecting significant growth [5] Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 2.422 billion yuan, with a year-on-year growth of 31.96%. The net profit attributable to shareholders was 109 million yuan, showing a slight decline of 0.27% [1][11] - The first quarter of 2024 reported a revenue of 586 million yuan, with a year-on-year increase of 52.99% and a net profit of 45 million yuan, marking a significant recovery [1][4] Customer and Market Dynamics - The company has optimized its customer structure, with new energy vehicle component sales reaching approximately 310 million yuan in 2023, up from 158 million yuan in 2022, representing 12.8% of total revenue [2] - The company has established stable partnerships with nearly 30 automotive manufacturers, including top players in the new energy vehicle sector [2] Profitability and Cost Management - The gross margin for 2023 was 12.80%, down 2.19 percentage points year-on-year, primarily due to the lower margin in the welding parts segment [3] - The first quarter of 2024 showed an improved gross margin of 13.8%, reflecting better cost management and operational efficiency [4] Future Outlook - The company forecasts revenue growth for 2024-2026, with expected revenues of 2.62 billion, 3.01 billion, and 3.47 billion yuan, and net profits of 190 million, 240 million, and 300 million yuan respectively [5]