On the evening of April 25, the company released its 2024 quarterly report, achieving revenue of 13.2.78, 3.07, and 311 million yuan respectively; +0.42%, +53.11%, and +134.18%, respectively, compared with the previous year. Gross profit margin 15.51%, YoY +2.55pct; Net sales margin 2.86%, YoY +1.43pct.
24Q1 showed results in cost reduction and efficiency, and profitability continued to increase. In the first quarter of 2024, the company's gross sales margin was 15.51%, -2.87pct month-on-month; net sales margin was 2.86%, +0.29pct month-on-month. Thanks to the continuous results of various cost reduction and efficiency measures promoted by the company in recent years, in particular, the gross margin of the automobile safety business increased 3.8 percentage points to about 13.9% year on year. With the continuous improvement of the European and American regional business, in particular, the improvement in the European region was more obvious, the automobile safety business performance increased continuously for several quarters, and the four major business regions around the world have achieved profits, and the performance growth was remarkable; the gross margin of the automotive electronics business was about 19.4%, which remained relatively stable. With the further implementation of the “Profit Enhancement” plan, the company's overall profit level is expected to continue to improve.
Orders are plentiful, seize independent brand opportunities. The company seizes the market opportunities of the continuous rise of leading independent brands, the rapid growth of smart electric vehicles, and the recovery of overseas car markets, and actively expands key customers and optimizes the new business order structure. The total life cycle amount of new orders received worldwide is about 29.8 billion yuan, of which the total amount of new orders received by the automotive safety business is about 23.9 billion yuan, and the total amount of new orders for the automotive electronics business is about 5.9 billion yuan. Both main businesses have maintained a strong new order acquisition momentum. Looking at the new business orders by model and market structure, the amount of new orders related to new energy vehicles is about 22.9 billion yuan, accounting for about 77%; the share of orders in the Chinese market, especially leading independent brands/new power brands, continues to rise rapidly, and the domestic business team received about 16 billion yuan in new orders from the global market, accounting for more than 50%.
Investment suggestions: The company's management has been significantly optimized, orders are sufficient, the new energy business continues to improve, and intelligent products have also achieved phased results. It is expected to achieve profits of 14.83/20.36/2,452 billion yuan in 24, 25, and 26, respectively, corresponding to 16.1/11.7/9.7 XPE, and maintain the “increase in holdings” investment proposal!
Risk warning: Overseas market expansion falls short of expectations, and downstream demand falls short of expectations.