Huada(603358) 天风证券·2024-05-29 03:02Investment Rating - The report gives a "Buy" rating for the company, with a target price of 33-39 RMB based on a 25-30X PE for 2024 [16]. Core Viewpoints - The company is positioned to benefit from the rise of domestic brands and international expansion, particularly through its investment in Chery, which is expected to drive sales growth [1][79]. - The company has established a strong customer matrix that includes both joint ventures and independent brands, enhancing its market presence [12][52]. - The acquisition of Jiangsu Hengyi allows the company to enter the electric vehicle market, significantly increasing its product offerings and profitability potential [81]. Financial Data and Valuation - Revenue is projected to grow from 5,162.61 million RMB in 2022 to 11,152.36 million RMB by 2026, with a CAGR of approximately 19.44% [2]. - The net profit attributable to the parent company is expected to rise from 260.33 million RMB in 2022 to 955.06 million RMB in 2026, reflecting a significant growth trajectory [2]. - The company’s EPS is forecasted to increase from 0.59 RMB in 2022 to 2.18 RMB in 2026, indicating strong earnings growth [2]. Strategic Layout - The company is focusing on the low-altitude economy, particularly in the flying car sector, which is expected to see rapid development in 2024 [5]. - The company has established production bases across five major automotive industry clusters in China, enhancing its supply chain efficiency [58]. Market Position and Customer Base - The company has a diversified customer base that includes major automotive manufacturers such as GAC Group, SAIC Group, and Tesla, as well as emerging players in the electric vehicle sector [12][52]. - The report highlights the high value of stamping parts in vehicles, with an average of over 1,500 stamping components per vehicle, indicating a substantial market opportunity [31]. Growth Potential - The global market for electric vehicle battery boxes is projected to reach 1,023 billion RMB by 2025, with significant growth expected in the coming years [19]. - The company’s strategic investments and acquisitions are expected to enhance its competitive position and drive revenue growth in the electric vehicle components market [81][91].