FORYOU(SZ:002906) Huachuang Securities·2024-05-13 12:32Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 38.1 CNY, based on a projected 31x PE for 2024 [28][35]. Core Insights - The company reported a revenue of 7.137 billion CNY in 2023, a year-on-year increase of 26.6%, and a net profit of 465 million CNY, up 22.2% [28][29]. - In Q1 2024, the company achieved a revenue of 1.991 billion CNY, reflecting a 51.34% year-on-year growth, and a net profit of 142 million CNY, which is an 83.52% increase [28]. - The automotive electronics segment generated 4.826 billion CNY in revenue, a 28.85% increase, driven by strong sales in digital acoustics, cockpit domain control, and HUD products [29]. - The company is expanding its international market presence and optimizing its customer structure, particularly in the new energy vehicle sector [29]. Financial Summary - Projected revenues for 2024-2026 are 8.929 billion CNY, 11.062 billion CNY, and 13.475 billion CNY, with growth rates of 25.1%, 23.9%, and 21.8% respectively [28]. - The net profit forecast for the same period is 644 million CNY, 852 million CNY, and 1.074 billion CNY, with growth rates of 38.5%, 32.4%, and 26.1% respectively [28]. - The company's gross margin for 2023 was 22.36%, with a net margin of 6.58% [29]. - The operating cash flow for 2023 was 442 million CNY, a 30.56% increase year-on-year [29]. Valuation Metrics - The company has a current price of 29.89 CNY, with a total market capitalization of 156.75 billion CNY [30]. - The price-to-earnings (P/E) ratio is projected to decrease from 35 in 2023 to 25 in 2024, and further to 15 by 2026 [23][28]. - The price-to-book (P/B) ratio is expected to remain around 3 for 2024 and 2025, decreasing to 2 by 2026 [23][28].