Introduction to this report:
New products such as domain controllers and Efuse are driving the value of bicycles that the company can support continuously increase. Combined with new domestic customers and overseas customers, the company is expected to achieve a sharp rise in volume and price, and performance is expected to continue to grow.
Key points of investment:
Maintain an increase in holdings rating and maintain the target price of 67.26 yuan. The company's products such as domain controllers and Efuse are gradually being released. New domestic forces and global customers such as BMW and Volkswagen have sufficient orders. The company is expected to achieve a sharp rise in volume and price, and the performance is expected to continue to grow. The company's 2024 EPS forecast was lowered to 2.04 (-0.26) yuan, maintained the 2025-2026 EPS forecast of 2.76/3.39 yuan, maintained the target price of 67.26 yuan, and maintained an increase in holdings rating.
The company launched new products such as domain controllers and Efuse, which greatly increased the value of bicycles.
The company will benefit from the trend of automobile intelligence. The chassis domain controller and body domain controller have been supplied to customers, and the participating companies' intelligent driving domain controllers and smart cockpit domain controllers have also received project targets, and the value of compatible bicycles is constantly increasing. The company's intelligent power distribution Efuse has been designated by customers such as Geely, Ideal, and Volkswagen, and is expected to continue to develop more customers and models in the future.
The number of new customers such as Ideal is gradually increasing, driving continuous growth in performance. In recent years, the company has developed new customers such as Xiaopeng, Ideal, NIO, and Gekrypton, and is expected to continue to deepen cooperation and create richer growth points in the future. Ideal Auto became the company's top five customers in 2023. In the first half of 2024, Ideal Auto accounted for 11% of the company's revenue. The value of products such as body domain controllers provided by the company for customers was high. Sales revenue of about 0.22 billion yuan was achieved in the first half of 2024, and is in the process of continuous expansion.
By speeding up the acquisition of global customer project targets and actively planning to set up factories in Europe and the US, overseas customers will become an important growth point in the medium to long term. The company continues to deepen cooperation with the Volkswagen Group, and has successively received targets for various projects such as Volkswagen Global, Audi Global, and Porsche. The company is also actively developing customers for global automobile brands such as BMW, Daimler, and Ford, and has a wealth of ongoing projects. The company's Japanese plant will be put into operation in 2023. It is expected that preparations for overseas factories such as Europe and North America will continue to be promoted in 2024, and the global production layout is expected to accelerate.
Risk warning: Risk of fluctuations in sales volume from major downstream customers, the pace of new product release falls short of expectations, and exchange rate fluctuations cause losses
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