NJEC(SH:600699) Guoxin Securities·2024-04-29 02:00Investment Rating - The investment rating for the company is "Buy" and is maintained [5][12] Core Views - The company's profitability continues to improve, with a 53% year-on-year increase in net profit attributable to shareholders in Q1 2024 [1][6] - The company achieved revenue of 132.78 billion yuan in Q1 2024, a 0.4% year-on-year growth, while net profit reached 3.07 billion yuan, marking a 53.1% year-on-year increase [1][6] - The automotive safety business is recovering, contributing to steady profit improvement, with a gross margin of 13.9% in Q1 2024, up 3.8 percentage points year-on-year [1][6] Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 132.78 billion yuan, with a year-on-year growth of 0.4% and a quarter-on-quarter decline of 7.9% [1][6] - The net profit attributable to shareholders was 3.07 billion yuan, reflecting a year-on-year increase of 53.1% and a quarter-on-quarter increase of 0.7% [1][6] - The gross margin for Q1 2024 was 15.51%, an increase of 2.55 percentage points year-on-year, while the net profit margin was 2.86%, up 1.43 percentage points year-on-year [1][6] Business Segments - The safety business generated approximately 93 billion yuan in revenue in Q1 2024, a 1.4% year-on-year increase, while the automotive electronics business generated about 40 billion yuan, a 1.5% year-on-year decline [1][6] - The company secured new orders worth approximately 298 billion yuan in Q1 2024, with 239 billion yuan from the automotive safety business and 59 billion yuan from automotive electronics [1][10] Future Outlook - The company forecasts net profits attributable to shareholders of 13.66 billion yuan, 16.61 billion yuan, and 20.01 billion yuan for 2024, 2025, and 2026, respectively, with corresponding earnings per share of 0.97 yuan, 1.18 yuan, and 1.42 yuan [12][14] - The company is focusing on expanding its automotive electronics business, particularly in smart driving and new energy management, with significant partnerships and product developments underway [2][11]