Gelonghui, April 25, and Xiniu Securities reported on April 24 that Yingheng Technology (1760.HK) achieved total revenue of 4.83 billion yuan in 2022 and recorded a surprising gross profit margin of 21.5% during the same period, driving the Group to record a 105.3% year-on-year increase in net profit. The performance of the NEV business continues to be encouraging: thanks to strong sales of new energy vehicles in China in 2022, Yingheng Technology's new energy business division also achieved satisfactory results. The business segment grew 91.0% year-on-year, accounting for 42.8% of total annual revenue (2021:34.1%). Since the Group has become a supplier for many new energy vehicle brands in China, it is expected that the Group will continue to grow with the industry in the future. The impact of Tesla's price reduction is relatively neutral: We believe that the impact of Tesla's price reduction on Yingheng Technology is relatively neutral. In the long run, we believe that NEV manufacturers will tend to replace price cuts and maintain vehicle sales by improving technology and specifications. Therefore, Yingheng Technology is playing a very important role. It can help NEV manufacturers i) improve vehicle specifications and technical standards without large-scale capital investment, and ii) quickly respond to market demand and changes by cooperating with the most neighboring research center among the Group's 16 research centers in China. Expectations of rapid growth are gradually being realized: as i) Yingheng Technology continues to deliver satisfactory performance, ii) the NEV and autonomous driving industries expand as expected, maintaining a positive attitude towards Yingheng Technology. Maintain the Group's target price of HK$7.76 per share, which is equivalent to 15.8x/13.3x/11.3x forecasted price-earnings ratio for 2023/2024/2025, reaffirming the “buy” rating.