CGA(600297) 华创证券·2024-06-05 00:31Investment Rating - The report maintains a "Recommendation" rating for Guanghui Automotive (600297) with a target price of 1.46 yuan [22]. Core Views - The major shareholder and senior management plan to increase their holdings, reflecting confidence in the company's future development. The controlling shareholder, Guanghui Group, intends to increase its stake by no less than 50 million and no more than 100 million yuan, while eight directors and senior management members plan to increase their holdings by a total of no less than 1.3 million and no more than 2.3 million yuan [22]. - In 2024, the company will optimize its brand structure and deepen its layout in new energy and overseas used car markets. The company has already closed 50 inefficient stores and transformed 17 brands in 2023, aiming to establish 245 outlets for ultra-luxury and luxury brands. Additionally, it has applied for authorization for 54 new energy stores and established close ties with over 20 new energy brands [22]. - The automotive market is experiencing intense price competition, and traditional dealership groups are in a transformation phase. The competition between domestic and joint venture brands, as well as between new energy and fuel vehicles, is becoming increasingly fierce. The report suggests that after the industry stabilizes, dealership models may help leading car manufacturers complete their channel layout, leading to a recovery in dealership performance [22]. - Investment suggestions indicate that the planned share increases by major shareholders and senior management may lead to a re-evaluation of the dealership model's value. The report adjusts the company's revenue forecasts for 2024-2026, projecting revenues of 144.9 billion, 151.9 billion, and 158.9 billion yuan, respectively, with a year-on-year growth of 5% [22]. Financial Summary - The report forecasts the following financial metrics: - Revenue: 137,998 million yuan in 2023, with a growth rate of 3.3%, and projected revenues of 144,871 million, 151,932 million, and 158,919 million yuan for 2024, 2025, and 2026, respectively [25]. - Net profit attributable to the parent company: 392 million yuan in 2023, with a growth rate of 114.7%, and projected profits of 579 million, 808 million, and 1,174 million yuan for 2024, 2025, and 2026, respectively [25]. - Earnings per share (EPS): 0.05 yuan in 2023, projected to increase to 0.07, 0.10, and 0.14 yuan for 2024, 2025, and 2026, respectively [25].