Incident: In 2023, the company achieved operating income of 30.420 billion yuan, 32.21% year on year; net profit to mother of 4.742 billion yuan, 9.77% year on year; realized net profit without deduction of 4,071 billion yuan, or 20.12% year on year.
2024Q1 achieved operating income of 6.492 billion yuan, or 35.78% year on year; net profit attributable to mother of 811 million yuan, 8.56% year on year; realized net profit without return to mother of 856 million yuan, or 7.92% year on year.
Comment:
The general automation business bucked the trend, and overseas sales continued to accelerate. The general automation industry was under pressure in 2023, and the company bucked the trend. General automation products reached 15 billion yuan in 2023, an increase of 49.44% year on year, and 2024Q1 achieved sales revenue of about 3.2 billion yuan, an increase of about 10% year on year. The company continues to explore overseas markets. By the end of 2023, the company had an overseas team of more than 400 people. Currently, it has set up 15 subsidiaries and offices around the world, with more than 100 overseas distributors distributed in Southeast Asia, East Asia, Europe, India, the Middle East and North Africa, America, etc. In 2023, the company's total overseas business revenue was about 1.7 billion yuan, an increase of more than 90% over the previous year, accounting for about 5.7% of the company's total revenue, and overseas sales are expected to continue to accelerate.
The NEV business continues to grow rapidly and is expected to gradually release profits. In 2023, the company's NEV business achieved sales revenue of about 9.4 billion yuan, an increase of more than 80% over the previous year. 2024Q1's NEV business achieved sales revenue of about 2.3 billion yuan, an increase of about 150% over the previous year, maintaining a high growth trend.
In terms of targeting, passenger cars will add about 30 new mainstream platform projects for domestic and foreign customers in 2023, covering all models, and achieving the annual fixed OI target. We believe that with the continued implementation of the company's designated customers, the NEV business revenue is expected to continue to increase and gradually contribute to profits.
Profit forecast and investment rating: We expect the company's net profit to be $57/72/89 billion in 2024-2026, respectively, up 21%, 27%, and 24% year-on-year. As of April 23, the market value corresponding to the PE valuation for 24 and 25 was 28/22 times, respectively, maintaining the “buy” rating.
Risk factors: risk of industry demand falling short of expectations; risk of iterative changes in technology; risk of raw material price fluctuations exceeding expectations; environmental protection and production safety risks, etc.