Incident: The company released its 2023 annual report, with revenue of 1,699 billion yuan, an increase of 22.80% over the previous year; net profit to mother was 102 million yuan, an increase of 169.54% over the previous year.

The company released its 2024 quarterly report, with revenue of 502 million yuan, an increase of 37.19% over the previous year; net profit to mother was 53 million yuan, an increase of 120.74% over the previous year.

Domestic and foreign revenues are growing. In 2023, domestic revenue reached 816 million yuan, up 18.67% year on year, while overseas revenue reached 883 million yuan, up 26.87% year on year. Overseas markets have been expanded over the years, and the business has basically entered a healthy stage of development, and customers are clearly willing to buy; at the same time, overseas sales strategies are being implemented, and the marketing network continues to expand.

Transportation vehicles are growing rapidly, and the company has strong technical reserves. For commercial vehicles, the company's transportation (freight) revenue was 708 million yuan, up 27.19% year on year; transportation (bus, taxi, school bus, etc.) revenue was 674 million yuan, up 15.54% year on year; front equipment revenue was 44 million yuan, up 102.74% year on year; and innovative business was 62 million yuan, up 57.13% year on year. The company's technology, products and solution system includes three parts: basic platform, basic capabilities and multi-industry solutions, and can flexibly provide solutions for various commercial vehicles.

European commercial security market policies are frequent. According to the requirements of the GSRII regulations issued in Europe in 2019 for commercial vehicles, the new vehicle announcement began in July 2022, and the licensing of new vehicles began in July 2024. They must be equipped with the following six intelligent warning functions, namely a driving area information reminder system, blind spot information reminder system, reversing information reminder system, intelligent vehicle speed assist system, driver fatigue warning system (DDAW), and tire pressure monitoring system. The company's long-term technical reserves and solutions will benefit its penetration into the European market.

Investment advice: The company's overseas and foreign revenues have all resumed their growth trend. The company's EPS is expected to be 1.14\ 1.67\ 2.18 yuan in 2024-2026, respectively, maintaining a “buy” rating.

Risk warning: New business areas fall short of expectations; overseas development falls short of expectations; industry competition intensifies.