Shuanglin Auto Parts(300100) 华鑫证券·2024-06-16 23:00Investment Rating - Buy (Maintained) [1] Core Views - The company has introduced an equity incentive plan, setting clear performance targets for 2024-2027, with net profit growth expected to reach 219.9%/267.9%/323.1% compared to 2023 [5] - The company's strategic focus on high-quality businesses, particularly in the new energy sector, has shown significant progress, with the 180 flat wire motor three-in-one electric drive platform achieving mass production [6] - The company's performance in Q1 2024 has reversed its previous困境, with revenue increasing by 19.6% YoY and non-GAAP net profit surging by 157.0% YoY [7] - The company is a leader in the wheel hub bearing market, with strong growth potential in overseas markets, particularly in the aftermarket segment [10] - The company is one of the few domestic companies with independent development capabilities for HDM products, holding a significant market share both domestically and globally [11] - The company is expanding into new business areas, such as ball screw products, with expected mass production by the end of 2024 [14] Strategic Focus and Business Integration - The company has strategically integrated its powertrain business, focusing on new energy electric drive systems while phasing out its transmission business [6] - The 180 flat wire motor three-in-one electric drive platform has been successfully mass-produced, with a monthly output of approximately 10,000 units, primarily supporting the Wuling Bingo series [6] - The company's wheel hub bearing business has shown strong growth, with a production capacity of 18 million units annually and a leading position in the domestic market [10] - The company's HDM products are supplied to major automakers and Tier 1 suppliers, with a significant presence in both domestic and international markets [11] Financial Performance and Projections - In 2023, the company achieved revenue of 4.14 billion yuan, a slight decrease of 1.1% YoY, but non-GAAP net profit increased by 12.5% YoY to 78 million yuan [5] - In Q1 2024, the company's revenue reached 1.06 billion yuan, a 19.6% YoY increase, with non-GAAP net profit surging by 157.0% YoY to 73 million yuan [5] - The company's gross margin in Q1 2024 improved to 21.0%, up 1.5 percentage points YoY, driven by the scale-up of its electric drive business [7] - The company's operating expense ratio in Q1 2024 decreased by 3.0 percentage points YoY to 12.6%, reflecting improved cost control [7] - The company's revenue is projected to grow to 4.77 billion yuan in 2024, with EPS expected to reach 0.75 yuan, and the current stock price implies a PE ratio of 13.9x [17] Market Position and Growth Potential - The company is a leader in the wheel hub bearing market, with a strong presence in both domestic and international markets, particularly in the aftermarket segment [10] - The company's HDM products hold a significant market share, with a global market share of 11.5% in 2018 and a domestic market share of 27.7%, ranking first in China [11] - The company is expanding into new business areas, such as ball screw products, with expected mass production by the end of 2024, targeting applications in braking, steering, and robotics [14] Equity Incentive Plan - The company has introduced an equity incentive plan, granting a total of 17.17 million restricted shares, representing 4.28% of the company's total share capital [15] - The plan sets performance targets for 2024-2026, with net profit growth expected to reach 219.9%/267.9%/323.1% compared to 2023 [15] - The plan aims to align the interests of management and core employees with the company's long-term growth objectives [15]