Orient Securities·2024-06-02 06:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 21.44 HKD based on a 33x PE valuation for 2024 [2][6]. Core Insights - In Q1 2024, the company's revenue reached 75.5 billion RMB, a year-on-year increase of 27%, with adjusted net profit hitting 6.5 billion RMB, a 100.8% increase, marking a historical high [1]. - The smartphone segment showed significant growth, with revenue of 46.5 billion RMB, up 33% year-on-year, and a gross margin of approximately 15%, an increase of 3.6 percentage points [1]. - The IoT and lifestyle products continued to grow, generating 20.4 billion RMB in revenue, a 21% increase year-on-year, with a gross margin of about 20% [1]. - Internet services also saw revenue growth, reaching 8 billion RMB, a 15% year-on-year increase, with a gross margin of 74% [1]. - The demand for the smart electric vehicle SU7 is strong, with 10,000 units delivered by mid-May 2024 [1]. Financial Summary - The company forecasts earnings per share (EPS) of 0.60, 0.73, and 0.85 RMB for 2024, 2025, and 2026 respectively, with revenue projections of 328.62 billion RMB for 2024, 376.16 billion RMB for 2025, and 432.45 billion RMB for 2026 [3][6]. - The gross margin is expected to be 21.2% in 2024, with net profit margin projected at 6.4% [3][9]. - The company’s total assets are projected to grow from 324.25 billion RMB in 2024 to 450.59 billion RMB by 2026 [9].