Incident: The company released its 2023 annual report. In 2023, the company achieved revenue of 602.32 billion yuan, +42.0% year over year; realized net profit to mother of 30.4 billion yuan, +80.7% year over year; realized deducted non-net profit of 28.46 billion yuan, +82.0% year over year.
Comment:
The company's sales volume increased rapidly throughout the year, and its performance reached a record high. The company achieved sales volume of 3,024,000 vehicles in 2023, +61.9% year-on-year. The company's sales volume increased in 2023, which led to an increase in performance. The company achieved revenue of 602.32 billion yuan for the full year of 2023, +42.0% year-on-year. Looking at the split business, the automobile business achieved revenue of 483.45 billion yuan, +48.9% year-on-year; the mobile phone business achieved revenue of 118.58 billion yuan, +20.0% year-on-year.
Driven by the scale effect, the company's profit increased. The company's gross sales margin in 2023 was 20.21%, +3.17pct year on year; the net sales margin was 5.20%, +1.02pct year on year; the cost ratio for the period was 12.75%, +2.82pct year on year. Looking at the specific cost rate situation: Sales, management, and R&D expenses were 4.19%, 2.23%, and 6.57%, respectively, and +0.64pct, -0.13pct, and +2.17pct, respectively.
Overseas deployment has accelerated, and it has already entered many countries and regions. While consolidating and expanding its domestic market development advantages, the company is actively accelerating its overseas layout, and has entered many countries and regions such as Japan, Germany, Australia, Brazil, and the United Arab Emirates. The Thai plant, the company's first overseas passenger car production base, was officially established in March 2023. At the same time, in July and December 2023, the company announced that it would establish a large-scale production complex in Brazil and build a world-leading NEV vehicle manufacturing base in Hungary to actively promote the localized production process and promote the electrification transformation of global automobiles.
Profit forecast and investment rating: We expect the company's net profit to be 41 billion yuan, 51.6 billion yuan, and 60.7 billion yuan in 2024-2026, corresponding to PE of 14 times, 11 times, and 10 times, respectively, maintaining a “buy” rating.
Risk factors: The launch process of high-end brand models falls short of expectations; sales volume of new models falls short of expectations; risk of fluctuations in upstream raw material prices, etc.