Investment Rating - The investment rating for the company is "Buy," indicating that the expected return over the next 6-12 months is greater than 15% compared to the relevant market index [29]. Core Viewpoints - The company, Tian You Wei (603202.SH), specializes in the research, design, production, sales, and service of automotive instruments, gradually expanding into the smart cockpit sector. The company has achieved significant revenue growth, with projected revenues of CNY 1.972 billion, CNY 3.437 billion, and CNY 4.465 billion for 2022, 2023, and 2024 respectively, representing year-over-year growth rates of 68.93%, 74.27%, and 29.90% [2][3][7]. - The company has established long-term stable partnerships with well-known automotive manufacturers, including Hyundai Motor Group, which is its largest customer, accounting for over 50% of its revenue during the reporting period. The company has also successfully entered the supply chains of other major automotive brands such as BYD, Changan Automobile, and Geely [20][21]. - The trend towards digitalization and smart cockpits in the automotive industry is expected to enhance the company's operational outlook, as higher-value products like full LCD combination instruments and dual-screen instruments gain market share [21]. Financial Summary - The company’s financial performance from 2022 to 2024 shows a strong upward trend in both revenue and net profit. The projected net profit for 2024 is CNY 1.136 billion, with a year-over-year growth of 34.96% [3][7]. - The revenue breakdown for 2024 indicates that full LCD combination instruments will contribute CNY 2.046 billion (46.01%), dual-screen instruments CNY 1.642 billion (36.93%), and other automotive electronic products CNY 0.523 billion (11.76%) [7]. Industry Overview - The automotive instrument industry has evolved through three main stages: mechanical instruments, electronic instruments, and currently, digital full LCD instruments. The penetration rate of full LCD instruments is expected to rise significantly, from approximately 25% in 2020 to about 62% by 2025 [18][19]. - The domestic market for full LCD instruments is projected to grow from CNY 198 billion in 2022 to CNY 267 billion by 2025, with a compound annual growth rate of 10.52% [18]. Competitive Position - Compared to similar companies in the industry, Tian You Wei's revenue scale is below the average, but its gross margin is positioned in the mid-to-high range among peers. The average revenue for comparable companies in 2023 is CNY 22.895 billion, with an average PE-TTM of 28.12X and an average gross margin of 18.57% [25].