SANHUA(SZ:002050) Tai Ping Yang·2024-05-06 02:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [9][10]. Core Insights - In Q1 2024, the company reported a double-digit growth in non-recurring net profit, with a total revenue of 64.40 billion yuan, reflecting a year-on-year increase of 13.40% [5]. - For the full year 2023, the company achieved total revenue of 245.58 billion yuan, a 15.04% increase year-on-year, and a net profit of 29.21 billion yuan, up 13.51% year-on-year [5]. - The automotive parts business experienced rapid expansion, driven by the growth of the downstream new energy vehicle sector, with automotive parts revenue increasing by 31.94% year-on-year to 99.14 billion yuan in 2023 [5]. Summary by Sections Financial Performance - In Q1 2024, the company’s gross margin was 27.05%, showing a year-on-year increase of 1.48 percentage points, while the net margin was 10.03%, facing short-term pressure [5]. - The company’s revenue and profit forecasts for 2024-2026 are as follows: net profit of 36.72 billion yuan in 2024, 42.90 billion yuan in 2025, and 52.98 billion yuan in 2026, with corresponding EPS of 0.98, 1.15, and 1.42 yuan respectively [6][7]. Business Segments - The company’s revenue from refrigeration and air conditioning parts was 146.44 billion yuan in 2023, growing by 5.86% year-on-year, while the automotive parts segment saw significant growth [5]. - Domestic revenue reached 134.03 billion yuan, a 17.41% increase year-on-year, outpacing overseas revenue growth of 12.31% to 111.54 billion yuan [5]. Market Outlook - The report highlights that under the global clean carbon reduction and China's dual carbon goals, energy efficiency upgrades are expected to be a growth driver for the refrigeration and air conditioning parts industry, with downstream new energy vehicle growth boosting upstream automotive parts demand [6].