Incident: The company released its 2024 quarterly report, and achieved revenue of 1,589 billion yuan in 24Q1, +15.83% year-on-year. Achieved net profit of 195 million yuan to mother, +26.85% year-on-year.
Q1 Outstanding performance and steady improvement in profitability
24Q1 achieved revenue of 1,589 billion yuan, +15.83% year-on-year. Achieved net profit of 195 million yuan, +26.85% year over year, realized net profit without return to mother of 205 million, +48.59% year over year, gross profit margin 27.85%, and +2.72pct month-on-month. Benefiting from the company's improved profits in business such as sunshades and headrests and the growth of the roof integration business, profits continued to rise steadily.
High-quality customer resources at home and abroad have helped the company expand its global strategy through years of overseas strategy. The company has established a good brand image in the global market with technology research and development, product quality and follow-up support services. Currently, the company supplies parts products for large multinational automobile companies such as SAIC-GM, FAW-Volkswagen, BMW, Audi, GM, Ford, Stellantis, Volkswagen, Tesla, Rivian, Toyota, Honda, Nissan, etc.; in the domestic market, the company supplies spare parts products to SAIC-GM, FAW-Volkswagen, SAIC-Changan Daifu Special, Dongfeng Nissan, God Leading domestic automobile companies such as Dragon, Beijing Benz, Great Wall, NIO, Xiaopeng, Ideal, Celis, and BYD supply products. With customer resource advantages and strict qualification procedures in the industry, good customer barriers have been established, and the company's global competitive advantage is stable, helping the company continue to expand its global strategy.
The roof system integration business is expanding at an accelerated pace, and the value of bicycles continues to increase. With its technological leadership in simultaneous development, mold manufacturing, inspection and testing, etc., the company has further accelerated the expansion of integrated roof and ceiling system products, promoted the expansion of the company's products from individual local automotive interior products such as sun visors to a large field of integrated roof systems, and expanded the roof system business in the North American market to domestic, European and other markets, thereby increasing the bicycle supply value of the company's products and further enhancing the company's development prospects.
Profit forecast: The company's revenue for 24-26 is expected to be 69.8/83.7/9.6 billion yuan in sequence, with year-on-year growth rates of 19%, 20%, and 19% in that order. Based on the company's downstream customers' core model sales falling short of expectations, we adjusted our net profit forecast to the mother from 24-25 to 10.5/1.32 billion, respectively, to an estimated net profit of 8.4/10.2/12 for 24-26.
300 million yuan, with year-on-year growth rates of 29%, 21%, and 20% in that order, maintaining the “buy” rating.
Risk warning events: industry demand falls short of expectations, customer expansion falls short of expectations, increased competition, sharp rise in raw materials, etc.