VanJee(SZ:300552) Guotou Securities·2024-05-13 00:30Investment Rating - The investment rating for the company is "Buy-A" with a target price of 34.96 CNY, indicating a potential upside of over 15% compared to the market index in the next six months [7]. Core Views - The company is positioned to benefit from a new wave of construction opportunities in traffic digitalization, supported by government initiatives aimed at upgrading transportation infrastructure [5][14]. - The company's revenue has shown signs of recovery, particularly in the vehicle-mounted OBU business, which has reached a cyclical bottom and is experiencing a sales rebound [4][14]. - The financial forecasts predict revenues of 12.41 billion CNY, 16.29 billion CNY, and 19.83 billion CNY for 2024, 2025, and 2026 respectively, with net profits expected to improve from a loss of 0.81 billion CNY in 2024 to a profit of 1.58 billion CNY in 2026 [14][16]. Summary by Sections Revenue and Profitability - In 2023, the company achieved total revenue of 909 million CNY, a year-on-year increase of 4.11%, while the net profit attributable to shareholders was 386 million CNY, with a significant decline in non-recurring net profit [3][4]. - The first quarter of 2024 saw a revenue of 159 million CNY, marking a 50.64% year-on-year growth, although the company reported a net loss of 79 million CNY [3][4]. Business Segments - The company’s revenue from various segments in 2023 included 530 million CNY from dedicated short-range communication, 202 million CNY from dynamic weighing, 105 million CNY from laser detection, and 68 million CNY from intelligent connected electronic products, with notable growth in the vehicle-mounted ETC-OBU business [4]. Market Opportunities - The government’s notification on supporting the digital transformation of highway and waterway infrastructure is expected to create significant opportunities for the company, which has a strong presence in smart transportation solutions [5][14]. - The company has participated in several smart construction projects, enhancing its market position and experience in the industry [5][13].