CRM(SH:688396) KAIYUAN SECURITIES·2024-04-29 04:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company's Q1 2024 performance showed a decline, but this short-term pressure does not alter its long-term growth potential, maintaining a "Buy" rating. The company reported a revenue of 9.901 billion yuan in 2023, down 1.59% year-on-year, and a net profit attributable to shareholders of 1.479 billion yuan, down 43.48% year-on-year. For Q1 2024, revenue was 2.116 billion yuan, down 9.82% year-on-year, and net profit was 33 million yuan, down 91.27% year-on-year [3][4]. Financial Performance Summary - In 2023, the company achieved a revenue of 9.901 billion yuan, with a year-on-year decline of 1.59%. The net profit attributable to shareholders was 1.479 billion yuan, a decrease of 43.48% year-on-year. The gross margin was 32.22%, down 4.49 percentage points year-on-year. For Q1 2024, revenue was 2.116 billion yuan, down 9.82% year-on-year, and the gross margin was 26.48%, down 8.33 percentage points year-on-year [3][5]. Earnings Forecast - The earnings forecast for 2024-2025 has been revised down to 1.340 billion yuan and 1.667 billion yuan respectively, with a new 2026 profit forecast of 1.960 billion yuan. The corresponding EPS for 2024, 2025, and 2026 are projected to be 1.01 yuan, 1.26 yuan, and 1.48 yuan respectively. The current stock price corresponds to a PE ratio of 35.7, 28.7, and 24.4 for the respective years [3][5]. Market Expansion - The company is actively expanding into the automotive electronics market, with products entering major automotive manufacturers such as BYD, Geely, and FAW. The company has made significant progress in car-grade product certification and has seen a 135% year-on-year increase in revenue from third-generation semiconductors [4][5].