JEE(SH:688162) Dongxing Securities·2024-04-29 05:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected relative performance that is better than the market benchmark by 5% to 15% [9][25]. Core Insights - The company achieved a revenue of 3,690.90 million yuan in 2023, representing a year-on-year growth of 5.97%. In Q1 2024, the revenue reached 84,768.74 million yuan, showing a significant year-on-year increase of 26.91% [3][25]. - The company plans to focus on quality improvement over scale in 2024, aiming to enhance overall profitability through efficiency and effectiveness [3][25]. - The smart equipment business generated revenue of 293,640.7 million yuan in 2023, a year-on-year increase of 22.58%, benefiting from the growth in the new energy vehicle sector [24][25]. Summary by Sections Company Overview - The company specializes in providing intelligent equipment and core components for new energy vehicles, with major products including electric motor control components and smart equipment for battery production [2]. Financial Performance - In 2023, the company reported a net profit attributable to shareholders of -20,417.19 million yuan, while Q1 2024 saw a net profit of 2,563.91 million yuan, a 17.09% increase year-on-year [3][25]. - The gross margin for Q1 2024 was 14.21%, showing improvement compared to the latter part of 2023, although lower than Q1 2023's 17.87% [3]. Business Segments - The smart equipment segment is expected to see management efficiency improvements, while the electric drive business is anticipated to benefit from new customer acquisitions, including partnerships with major automotive manufacturers [3][25]. - The electric drive business reported a revenue of 6.91 billion yuan in 2023, a decline of 16.17% year-on-year, with a gross margin dropping to 2.07% [12][25]. Future Outlook - The company forecasts a recovery in profitability through stable growth in the smart equipment sector and operational improvements in the electric drive business, with projected net profits of 1.26 billion yuan, 1.85 billion yuan, and 2.29 billion yuan for 2024, 2025, and 2026 respectively [25][27].