H&T INTELLIGENT(SZ:002402) Guotai Junan Securities·2024-05-14 02:02Investment Rating - The report maintains a "Buy" rating for the company [2][17] - The target price is set at 16.25, down from the previous forecast of 17.82 [17] Core Views - The company's profitability is under pressure, but the automotive electronics segment has achieved breakthroughs, potentially opening new profit avenues [17] - The report indicates a downward revision of profit forecasts, with the net profit for 2023 expected to be 3.31 billion, lower than previous expectations [17] - The automotive electronics business is expected to grow significantly due to the ongoing electrification and connectivity trends in the automotive industry [17] Financial Summary - Revenue for 2023 is projected at 7,507 million, a year-on-year increase of 25.85% [17] - The net profit for 2024 is forecasted to be 608 million, representing a 89% increase [17] - The company's EBIT is expected to rise to 694 million in 2024, reflecting a 26% growth [17] Profitability Metrics - The report highlights a decline in net profit margin from 7.3% in 2022 to 4.4% in 2023, with an expected recovery to 6.4% in 2024 [17] - Return on equity (ROE) is projected to improve from 7.3% in 2023 to 12.2% in 2024 [17] - The report notes a decrease in operating profit margin from 8.5% in 2022 to 4.9% in 2023, with a forecasted recovery to 7.4% in 2024 [17] Market Position - The company is recognized as a leading player in the domestic smart controller industry, with a strong position in various sectors including home appliances and automotive electronics [17] - The automotive electronics segment has seen significant growth, with sales revenue reaching 5.52 billion, a year-on-year increase of 82.52% [17]