Wanma Tech(SZ:300698) Huafu Securities·2024-06-02 06:30Investment Rating - The report initiates coverage on Wanma Technology with a "Buy" rating, setting a target price of 53.72 yuan based on a 79x PE ratio for 2024 [36][37][44]. Core Viewpoints - Wanma Technology is positioned to benefit from the dual growth of the "Vehicle Networking Ecosystem + Autonomous Driving Data Closed Loop Toolchain," with its subsidiary Youka Technology providing comprehensive products and services to major automotive manufacturers [19][31]. - The company has established strategic partnerships with various entities, enhancing its presence in the automotive intelligence and connectivity sectors [19][31]. - The vehicle networking segment has seen significant revenue growth, increasing from 10.10% of total revenue in 2021 to 34.16% in 2023, indicating a strong shift towards this high-growth area [31][80]. Summary by Sections Company Overview - Wanma Technology, founded in 1997 and listed in 2017, is a prominent manufacturer in communication electronics and has transitioned into the vehicle networking industry through its subsidiary Youka Technology [31][76]. - In 2023, the company reported total revenue of 520.68 million yuan, a 2.35% increase year-on-year, with net profit rising by 109.63% to 64.46 million yuan [31][76]. Financial Analysis - The vehicle networking business has significantly contributed to the company's gross margin, which increased from 20.74% in 2020 to 39.77% in 2023 [63][85]. - Revenue projections for 2024-2026 are estimated at 585.42 million yuan, 724.73 million yuan, and 977.02 million yuan, respectively, with corresponding net profits of 92 million yuan, 137 million yuan, and 211 million yuan [24][36]. Profitability Forecast - The report anticipates a continued increase in revenue driven by the vehicle networking segment, with growth rates of 12%, 24%, and 35% for 2024, 2025, and 2026, respectively [24][36]. - The company is expected to maintain a stable sales expense ratio, projected at 12.0%, 11.5%, and 11.0% for the years 2024-2026 [12][24]. Market Position and Strategy - Wanma Technology's strategy includes leveraging its existing partnerships and technological capabilities to enhance its offerings in the vehicle networking space, particularly focusing on the development of the autonomous driving data closed loop toolchain [19][72]. - The company aims to provide a comprehensive lifecycle management solution for vehicles, supporting various operational and maintenance needs for automotive manufacturers [69][72].