FORYOU(SZ:002906) Guoxin Securities·2024-04-29 02:30Investment Rating - The investment rating for Huayang Group is "Buy" [5][6][8] Core Views - In Q1 2024, the company achieved a net profit of 142 million yuan, representing a year-on-year increase of 84%. Revenue reached 1.991 billion yuan, up 51.34% year-on-year, although it decreased by 14.92% quarter-on-quarter. The overall growth rate of 51% outpaced the automotive industry's production growth by 45 percentage points [1][2][8] - The company has signed a cooperation letter of intent with Huawei for smart vehicle light business, with products featured in models such as the AITO M5 and M7. The sales volume for M5 and M7 in Q1 2024 was 2,931 and 69,688 units, respectively [2][48] - The company focuses on automotive intelligence and lightweighting, continuously upgrading products and optimizing customer structure. The automotive electronics segment includes cockpit domain controllers, HUDs, display screens, wireless charging, digital acoustics, precision motion mechanisms, and LCD instruments, all showing significant sales growth [2][3][51] Summary by Sections Financial Performance - In Q1 2024, the gross profit margin was 21.6%, a decrease of 0.8 percentage points year-on-year and 1.4 percentage points quarter-on-quarter. The net profit margin was 7.2%, an increase of 1.2 percentage points year-on-year, remaining stable quarter-on-quarter. The four expense ratios were 14.1%, down 3.2 percentage points year-on-year [2][17][24] - The company forecasts revenues of 9.471 billion, 12.123 billion, and 15.342 billion yuan for 2024, 2025, and 2026, respectively, with corresponding profits of 646 million, 921 million, and 1.182 billion yuan. The PE ratios are projected to be 24, 17, and 13 times for the same years [3][6][8] Product Development - The company has made significant advancements in automotive electronics, focusing on smart cockpits, smart driving, and smart connectivity. It has developed various products based on different chip solutions, achieving mass production and gaining recognition from customers [2][33][38] - The precision die-casting segment has expanded its product categories, with a significant increase in orders related to new energy and automotive electronics [2][51] Market Position and Customer Base - The company has strengthened its customer base, collaborating with major automotive manufacturers such as Great Wall, Changan, Geely, and BYD, while also making progress in overseas markets [2][41][42] - Huayang Group has received multiple awards for quality and performance from various automotive manufacturers, indicating strong market recognition and customer satisfaction [45][46]