WBTL(SH:603596) Changjiang Securities·2024-05-17 03:32Investment Rating - The investment rating for the company is "Buy" and is maintained [11]. Core Views - The company achieved a revenue of 1.86 billion yuan in Q1 2024, representing a year-on-year growth of 24.0%, and a net profit attributable to shareholders of 210 million yuan, up 21.9% year-on-year [5][6]. - The company benefits from the rapid ramp-up of new projects in steering, lightweight components, and intelligent electronic control, contributing to stable revenue growth despite pressures from rising raw material costs [6][7]. - The company has a strong outlook for 2024, with accelerated new product launches and ongoing capacity expansion, which is expected to drive continued earnings growth [7]. Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 1.86 billion yuan, a 24.0% increase year-on-year, and a net profit of 210 million yuan, reflecting a 21.9% year-on-year growth [5][6]. - The gross margin for Q1 2024 was 20.7%, down 0.7 percentage points year-on-year and 2.3 percentage points quarter-on-quarter, impacted by increased raw material and shipping costs [6]. - The company maintained a stable expense ratio of 8.8% in Q1 2024, with a net profit margin of 11.3%, slightly down from the previous year [6]. Business Outlook - The company has added 106 new projects in Q1 2024, with significant contracts from a North American electric vehicle company and a German joint venture, indicating strong future revenue potential [7]. - The company is in a phase of rapid capacity expansion, with a capital expenditure of 1.03 billion yuan in 2023, a 69.9% increase year-on-year, which is expected to enhance profitability as capacity is released [7]. - The company is positioned to become a global platform enterprise in chassis electronics, with ongoing advancements in lightweight and electronic parking brake (EPB) technologies [7]. Market Performance - The company’s major clients showed positive sales performance in Q1 2024, with passenger car wholesale sales reaching 5.685 million units, a year-on-year increase of 10.6% [6]. - The company’s mechanical steering product sales increased by 54% year-on-year, while lightweight brake components and intelligent electronic control products also saw significant growth [6].