ANHUI ZHONGDING(000887) 东吴证券·2024-05-05 01:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's overseas asset profitability is accelerating recovery, with significant progress in air suspension systems [2] - The company reported a slight miss in 2023 annual results but exceeded expectations in Q1 2024 [4] - The air suspension business is progressing faster than expected, with substantial orders from domestic automakers [5] Financial Performance Summary - 2023 Annual Report: Revenue reached 17.244 billion yuan, up 16% year-on-year; net profit attributable to shareholders was 1.131 billion yuan, up 17% year-on-year [4] - 2024 Q1 Report: Revenue was 4.69 billion yuan, up 22% quarter-on-quarter and 5% year-on-year; net profit attributable to shareholders was 360 million yuan, up 38% quarter-on-quarter and 41% year-on-year [4] - Profitability Metrics: The gross margin for 2023 was 22.0%, an increase of 1.1 percentage points year-on-year [2] Revenue and Profit Forecasts - Revenue forecasts for 2024 and 2025 have been raised to 19.917 billion yuan and 22.805 billion yuan, respectively [6] - Expected net profit for 2024 and 2025 is maintained at 1.33 billion yuan and 1.54 billion yuan, respectively [6] - The company anticipates a revenue growth rate of 16% in 2026, with net profit growth rates of 18%, 15%, and 13% for the following years [6] Business Segment Performance - The air suspension system revenue for 2023 was 8.2 billion yuan, a year-on-year increase of 20% [5] - The company has secured a total order value of approximately 12.1 billion yuan for its domestic air suspension business [5] - The gross margin for Q1 2024 was 22.42%, reflecting a significant impact from scale effects [6]