海外业务盈利改善，空气悬架业务获重大突破

Investment Rating - The report maintains a "Recommend" rating for Zhongding Co Ltd (000887 SZ) [3] Core Views - Overseas business profitability has improved with gross margin increasing from 14 5% in 2022 to 19 1% in 2023 [6] - Air suspension business achieved significant breakthroughs with revenue reaching 820 million yuan in 2023 (YoY +20%) and gross margin improving to 22 7% [7] - The company's customer structure continues to optimize with new energy vehicle business accounting for 36 3% of automotive revenue in 2023 [7] - Air suspension system market has vast potential and Zhongding has secured air spring project approvals marking a milestone in this business [11] Financial Performance - 2023 revenue reached 17 24 billion yuan (YoY +15 6%) with net profit attributable to parent company of 1 13 billion yuan (YoY +16 8%) [6] - Q1 2024 revenue was 4 69 billion yuan (YoY +21 6%) with net profit of 360 million yuan (YoY +37 6%) [6] - 2023 dividend plan proposes 2 yuan per 10 shares cash dividend (tax included) [6] - 2024/2025 net profit forecasts adjusted to 1 386/1 653 billion yuan with 2026 forecast at 1 878 billion yuan [14] Business Segments - Overseas production distribution in 2023: Asia 61 2% Europe 30 0% Americas 8 8% [6] - New energy vehicle business reached 5 98 billion yuan in 2023 accounting for 36 3% of automotive revenue [7] - Domestic new energy vehicle business reached 4 32 billion yuan accounting for 53 1% of domestic revenue [7] - Air suspension system total order value reached 12 1 billion yuan with assembly products accounting for 1 7 billion yuan [7] Future Outlook - Air suspension system business is in high growth phase with core components achieving localization [14] - The company is accelerating layout of other hardware assembly products including magnetorheological damper projects [14] - Traditional business maintains stable growth while new businesses (air suspension lightweight chassis thermal management) show good development momentum [14] Financial Ratios - 2023 gross margin improved to 22 0% from 20 9% in 2022 [10] - 2023 ROE reached 9 4% with forecast to increase to 11 7% by 2026 [17] - 2023 EPS was 0 86 yuan with forecast to reach 1 43 yuan by 2026 [17] - 2023 P/E ratio was 15 3x with forecast to decrease to 9 2x by 2026 [10]