HASCO(SH:600741)2025-07-09 02:40Summary of Huayu Automotive Conference Call Company Overview - Huayu Automotive has shown steady revenue growth from 50 billion in 2020 to 72 billion in 2023, with a slight decline to 67 billion expected in 2024, maintaining a high level due to a centralization strategy that reduces reliance on SAIC Group, increasing external customer share to 62.2% [2][3] Core Insights and Arguments - The company’s revenue is projected to grow from 140 billion in 2020 to approximately 170 billion by 2024, with net profit increasing from over 5 billion in 2020 to 7.2 billion in 2023, despite a forecasted drop to 6.7 billion in 2024, indicating overall strong performance [3] - In the first half of 2025, all top ten customers excluding Tesla, including SAIC Group, BYD, Geely, and Chery, experienced a total year-on-year growth of 14%, with an expected annual growth rate of around 10% [2][3] - SAIC Group's sales have declined from 7 million vehicles in 2020 to 4 million in 2024, but under new leadership, the company is accelerating electrification and intelligence, significantly reducing inventory, which laid the foundation for a rebound in 2025 [2][3] - In Q1 2025, SAIC Group's sales reached 940,000 vehicles, a year-on-year increase of 13%, with net profit attributable to shareholders growing by 11% to 3 billion [2][3] - As a key supplier to SAIC Group, Huayu Automotive stands to benefit from the rebound in SAIC Group's sales and international market expansion, potentially enhancing its revenue and profitability [2][3] Additional Important Insights - Huayu Automotive operates with a stable business model, maintaining an annual dividend payout ratio of approximately 40%, with an average dividend amount of 2.5 billion, resulting in a current dividend yield of 4.4%, providing stable returns to investors [2][3] - The company's market capitalization is 57 billion, with a very low institutional holding ratio, indicating that the company is significantly undervalued, with future revenue and profit growth expected to maintain between 5% to 8% [2][3]