SANHUA(SZ:002050) Huachuang Securities·2024-05-05 23:32Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 29 yuan, compared to the current price of 21.91 yuan [1]. Core Insights - The company achieved a revenue of 24.56 billion yuan in 2023, representing a year-on-year increase of 15.0%, and a net profit attributable to shareholders of 2.92 billion yuan, up 13.5% year-on-year [2][3]. - The revenue growth is driven by the automotive parts business, which has seen a significant increase due to the global electrification of vehicles, with automotive parts revenue growing by 31.9% year-on-year [3]. - The company is expanding its new business lines, particularly in the field of electric vehicle components, with a reported 63.0% increase in sales volume of new energy vehicle parts in 2023 [3]. Financial Performance Summary - In Q4 2023, the company reported a revenue of 5.58 billion yuan, down 2.9% year-on-year, and a net profit of 760 million yuan, down 19.5% year-on-year. However, the non-recurring net profit increased by 28.7% year-on-year [2]. - For Q1 2024, the company achieved a revenue of 6.44 billion yuan, up 13.4% year-on-year, and a net profit of 650 million yuan, up 7.7% year-on-year [2]. - The gross profit margin for Q4 2023 and Q1 2024 was 29.2% and 27.1%, respectively, showing a year-on-year increase of 0.6 and 1.5 percentage points [3]. Business Segment Analysis - The company’s revenue from refrigeration and automotive parts reached 14.64 billion yuan and 9.91 billion yuan in 2023, with year-on-year growth of 5.9% and 31.9%, respectively [3]. - The automotive parts segment now accounts for 40.4% of total revenue, with over 90% of this coming from new energy vehicle components [3]. - Domestic and overseas revenues for 2023 were 13.40 billion yuan and 11.15 billion yuan, respectively, with year-on-year growth of 17.4% and 12.3% [3]. Future Outlook - The company is expected to maintain steady revenue growth, benefiting from increased domestic air conditioning production and ongoing development in the automotive parts sector [3]. - The company plans to issue GDRs to expand its global production base and invest in robotics and thermal management components, which could significantly enhance growth potential [3]. - The profit forecast for 2024 and 2025 has been adjusted to 3.56 billion yuan and 4.16 billion yuan, respectively, with a new forecast for 2026 set at 4.88 billion yuan [3].