YINLUN(SZ:002126) GOLDEN SUN SECURITIES·2024-05-07 04:08Investment Rating - The investment rating for the company is "Buy" based on previous assessments [16]. Core Insights - The company reported a revenue of 11 billion CNY in 2023, representing a year-on-year increase of 30%, and a net profit attributable to shareholders of 6.1 billion CNY, up 60% year-on-year [1]. - For Q1 2024, the company achieved a revenue of 2.97 billion CNY, a 16% increase year-on-year, with a net profit of 1.9 billion CNY, reflecting a 51% year-on-year growth [1]. - The company aims for a revenue target of 13 billion CNY in 2024, with a goal to reach 13.5 billion CNY, and a net profit margin exceeding 6% [2]. - Growth drivers include the expansion into new business areas, particularly in data center server liquid cooling, and a global expansion strategy that is expected to add over 6.1 billion CNY in annual revenue from new projects [2]. Financial Performance Summary - In 2023, the company achieved a gross profit margin of 21.6% and a net profit margin of 6.4% [1]. - For Q1 2024, the gross profit margin remained stable at 21.6%, while the net profit margin improved to 7.1% [1]. - The company has shown a consistent increase in profitability, with net profit forecasts for 2024, 2025, and 2026 expected to be 881 million CNY, 1.14 billion CNY, and 1.4 billion CNY respectively, with corresponding P/E ratios of 19, 14, and 12 [14]. Business Growth and Market Position - The company has a strong customer base in the commercial vehicle sector, with significant clients including BYD, NIO, and Xpeng in the new energy vehicle segment [13]. - The domestic sales of commercial vehicles reached 403,000 units in 2023, a 22% increase year-on-year, while new energy vehicle sales reached 950,000 units, up 38% year-on-year [13]. - The company is actively enhancing its market share, which helps mitigate the impact of fluctuations in downstream customer sales on overall performance [13]. Operational Efficiency - The company has improved its operational efficiency, with a reduction in sales and management expenses, while maintaining a focus on cost control [32]. - In Q1 2024, the sales expense ratio was 2.4%, management expense ratio was 5.3%, and R&D expense ratio was 4.6%, showing a slight increase year-on-year but a decrease in some areas compared to the previous quarter [32].