WUS(SZ:002463)2024-06-04 11:00Investment Rating - The investment rating for the company is "OUTPERFORM" with a target price of RMB 38.69 [2][12]. Core Insights - The company reported a revenue of RMB 8.94 billion in 2023, representing a year-on-year increase of 7.23%, with a gross profit margin (GPM) of 31.17%, up 0.89 percentage points. The net profit attributable to shareholders was RMB 1.51 billion, up 11.09% year-on-year [3][10]. - In Q4 2023, revenue reached RMB 2.86 billion, up 11.02% year-on-year, with a GPM of 32.44%, and net profit attributable to shareholders was RMB 0.56 billion, up 27.16% year-on-year [10][11]. - For Q1 2024, revenue was RMB 2.58 billion, up 38.34% year-on-year, with net profit attributable to shareholders of RMB 0.52 billion, up 157.03% year-on-year [10][11]. Financial Performance - The company's revenue for 2023 was RMB 89.38 billion, with a gross profit margin of 31.17% and a net profit of RMB 15.13 billion [3][5]. - The forecast for 2024-2026 projects revenues of RMB 111.92 billion, RMB 137.79 billion, and RMB 165.70 billion, with net profits of RMB 21.15 billion, RMB 27.41 billion, and RMB 34.15 billion respectively [4][12]. - The company’s gross profit margin is expected to improve to 32.2% in 2024 and further to 33.5% by 2026 [5][8]. Business Segments - The enterprise communication segment generated revenue of RMB 58.7 billion in 2023, up 6.82% year-on-year, with a GPM of 34.51% [3][11]. - The automotive segment saw revenue of RMB 21.58 billion, up 13.74% year-on-year, with a GPM of 25.65% [3][11]. - AI-related revenue reached RMB 12.4 billion, a significant increase of 186% year-on-year, driving growth in the enterprise communication segment [3][11]. International Operations - Overseas revenue accounted for RMB 72.18 billion in 2023, up 14.67% year-on-year, representing 80.75% of total revenue [4][11]. - The construction of the Thai factory is progressing, with an investment of RMB 1.4 billion and 27% completion by the end of 2023 [4][11]. Expense Management - The company reported sales, management, and financial expense ratios of 3.13%, 2.19%, and -0.76% respectively in 2023 [4][11]. - R&D expenses increased by 15% year-on-year to RMB 0.54 billion, with an expense ratio of 6.03% [4][11].