FENGHUA(000636) 长城证券·2024-06-13 03:01Investment Rating - The report maintains a "Hold" rating for the company, expecting a stock price relative to the industry index to fluctuate between -5% to 5% over the next six months [19]. Core Views - The company reported a slight revenue growth of 8.97% year-on-year in 2023, with total revenue reaching 4.22 billion yuan. However, the net profit attributable to shareholders decreased by 46.99% to 173 million yuan, while the non-recurring net profit increased significantly by 149.95% to 150 million yuan [3][25]. - In Q1 2024, the company achieved a revenue of 1.06 billion yuan, marking a year-on-year growth of 13.28% and a quarter-on-quarter growth of 7.82%. The net profit attributable to shareholders was 73 million yuan, up 25.05% year-on-year and 17.59% quarter-on-quarter [3][22]. - The company is benefiting from the rapid growth of the new energy vehicle market and has deepened cooperation with automotive clients, with products being supplied to major brands like Huawei and BYD [4][9]. Financial Summary - In 2023, the company's revenue was 4.22 billion yuan, with a year-on-year growth rate of 9.0%. The net profit attributable to shareholders was 173 million yuan, down 47.0% year-on-year. The projected revenues for 2024, 2025, and 2026 are 5.10 billion yuan, 5.85 billion yuan, and 6.63 billion yuan, respectively, with expected growth rates of 20.7%, 14.7%, and 13.3% [5][25]. - The company's gross margin for 2023 was 14.35%, a decrease of 3.62 percentage points year-on-year, while the net margin was 4.29%, down 4.47 percentage points year-on-year. In Q1 2024, the gross margin improved to 16.79%, an increase of 5.71 percentage points year-on-year [22][25]. - The report forecasts net profits for 2024, 2025, and 2026 to be 392 million yuan, 526 million yuan, and 776 million yuan, respectively, with EPS projected at 0.34 yuan, 0.45 yuan, and 0.67 yuan [25]. Industry Insights - The global electric vehicle market is expected to grow significantly, with a projected CAGR of approximately 17.80% from 2023 to 2030, providing a broad market space for the company's automotive-grade products [9]. - The company has successfully introduced multiple high-end MLCC products and is advancing its production capacity for various electronic components, which are essential for the automotive and communication sectors [6][25].