HOP(SH:603319) East Money Securities·2024-06-13 10:00Investment Rating - The report assigns a rating of "Accumulate" for the company [15]. Core Views - The company has shown steady revenue growth, with a 2023 revenue of 1.908 billion, up 17.44% year-on-year, and a net profit of 217 million, up 27.76% year-on-year [2][17]. - The traditional oil pump products' revenue share is decreasing, while the share of new energy vehicle components is increasing, indicating a strategic shift towards more innovative products [2][4]. - The company is well-positioned to benefit from the automotive industry's trends towards energy efficiency and electrification, with significant market opportunities for its electronic pump products [4][22]. Financial Performance - In Q1 2024, the company achieved a revenue of 465 million, a year-on-year increase of 14.59%, and a net profit of 45 million, up 25.76% year-on-year [2]. - Revenue projections for 2024, 2025, and 2026 are 2.407 billion, 2.890 billion, and 3.381 billion respectively, with corresponding net profits of 256 million, 324 million, and 389 million [11][17]. - The company's EBITDA is expected to grow from 361.83 million in 2023 to 606.88 million by 2026 [11]. Business Segments - The company's product portfolio includes oil pumps, water pumps, transmission oil pumps, and components for electric vehicles, indicating a diverse business model [5]. - The share of traditional oil pump products in revenue has decreased from 60.47% in 2021 to 50.05% in 2023, while new energy vehicle components now account for 20.66% of revenue [2][4]. Market Trends - The automotive industry's focus on energy conservation and cost reduction is driving demand for the company's innovative products, such as the variable displacement oil pump, which improves engine performance and reduces fuel consumption [4]. - The company has established relationships with major clients, including BYD and Cummins, which positions it well for future growth in the electronic pump market [4][22].