Incident: (1) On April 25, the company released its report for the first quarter of 2024. In 2024Q1, it achieved revenue of 13.28 billion yuan, +0.4%/-8.0% year-on-month; realized net profit of 310 million yuan, +53.1%/+1.0% year-on-month, and realized net profit without deduction of 310 million yuan, or +134.2%/-6.0% year-on-month. (2) The company released the “2023 Sustainability Report”, with a total annual R&D investment of about 3.65 billion yuan, accounting for 6.6% of revenue. It has 5,344 R&D personnel, accounting for 12.2% of the total number of employees; the annual environmental investment amount is about 39.16 million yuan, and there have been no major environmental violations; in the employee satisfaction survey of Joyson Safety in Asia, the satisfaction rate reached 84.0%.
The revenue scale remained steady, and the net interest rate hit a new high since 2021. 2024Q1 achieved revenue of 13.28 billion yuan, of which the automotive safety business achieved revenue of about 9.3 billion yuan and automotive electronics achieved revenue of about 4 billion yuan.
In terms of profit level, 2024Q1's overall gross margin and net margin were 15.51%/2.86%, respectively, +2.55pp/ +1.43pp year over year, and -2.87pp/ +0.29pp, respectively. Among them, the gross margin of the automotive safety business was about 13.9%, +3.8pp. With the continuous improvement of business in Europe and America, the company's automotive safety business performance improved sequentially for several consecutive quarters, and all four major global business regions have achieved profits; the gross margin of the automotive electronics business is about 19.4%, which is relatively stable. With the further implementation of the company's “profit improvement” plan, the overall profit level is expected to continue to improve.
New orders increased significantly year over year, and the structure was continuously optimized. The total lifetime value of new orders received by 2024Q1 from around the world was about 29.8 billion yuan, an increase of 71.3% over the previous year. Among them, the automotive safety business received a total of about 23.9 billion yuan of new orders, and the automotive electronics business received a total of about 5.9 billion yuan of new orders. Looking at the new business orders by model, the amount of new orders related to new energy vehicles was about 22.9 billion yuan, accounting for about 77%; by market structure, the share of orders in the Chinese market, especially leading independent brands/new power brands, continued 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%.
Profit forecasting and investment advice. The company's net profit for 2024-2026 is estimated to be 1,518/19.45/2.60 billion yuan, CAGR is 29.6%, EPS is 1.08/ 1.38/ 1.68 yuan, respectively, and the corresponding PE is 16/ 12/10 times, respectively. The company was given 24 times PE in 2024, corresponding to a target price of 25.92 yuan, maintaining a “buy” rating.
Risk warning: Emerging sectors and industries are developing more slowly than expected, rising raw material costs, and exchange rate fluctuations.