SHUANGHUAN COMPANY(002472) 民生证券·2024-04-30 02:32Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 24.05 CNY per share on April 29, 2024 [2][3]. Core Views - The company reported Q1 2024 revenue of 2.075 billion CNY, a year-on-year increase of 15.8%, driven by growth in new energy and consumer gear businesses. The net profit attributable to shareholders was 221 million CNY, up 29.4% year-on-year, indicating significant profit improvement [2]. - The company is expanding its global footprint, with plans to accelerate overseas factory construction in Hungary while maintaining strong domestic production capacity of 5 million sets of new energy gear [2]. - The subsidiary, Huandong Technology, is set to spin off and list on the STAR Market, which is expected to enhance its financing capabilities and support the domestic replacement of robotic joint businesses [2]. Summary by Sections Financial Performance - Q1 2024 revenue was 2.075 billion CNY, with a gross margin of 22.7%, reflecting a year-on-year increase of 1.9 percentage points. The profit margin was supported by improved product structure and cost efficiency [2]. - The company forecasts revenues of 10.32 billion CNY, 12.45 billion CNY, and 14.94 billion CNY for 2024, 2025, and 2026 respectively, with net profits projected at 1.052 billion CNY, 1.337 billion CNY, and 1.663 billion CNY for the same years [3][5]. Growth Drivers - The company is benefiting from a strong market share in the new energy vehicle sector, with a domestic market share of 40%-50% in 2023. The wholesale sales of new energy passenger vehicles reached 1.98 million units in Q1 2024, a year-on-year increase of 31.2% [2]. - The expansion into international markets is highlighted by securing projects with major global automotive brands, which is expected to drive future growth [2]. Strategic Initiatives - The planned spin-off of Huandong Technology aims to diversify financing channels and enhance the company's overall profitability as it focuses on advanced robotics and precision gear development [2]. - The company is committed to strengthening its international team and capabilities to support its global expansion strategy [2].