Event: the company releases its quarterly report of 2024Redditcraps1Q24 Company realized total revenue 4Redditcraps.200 million yuan (+ 26.0%), realizing net profit of 50 million yuan (- 19.7%) and deducting non-return net profit of 70 million yuan (+ 10.2%). 1Q24's revenue is up and gross / net interest rates are down. 1Q24 achieved a total operating income of 420 million yuan, a year-on-year + 26.0%, a net profit of 50 million yuan, a year-on-year net profit of-19.7%, and a non-return net profit of 70 million yuan, a year-on-year increase of + 10.2%. We expect the company's non-return net profit to increase over the same period last year mainly due to changes in the fair value of equity investment in the company's non-recurring profit and loss. In terms of gross / net margin, 1Q24 has a gross margin of 27.0% (- 0.8pct) and a net margin of 11.7% (- 6.7pct). From the point of view of the period expense rate, 1Q24's sales expense rate is 1.2% (+ 0.7pct). The increase in sales expenses is mainly due to the increase in employee stock ownership plan share payment fees and operating income, which leads to the increase in three guarantees; the management expense rate is 5.9% (+ 1.2pct), and the increase in management expenses is mainly due to the company's increase in employee stock ownership plan share payment fees and year-on-year wages and bonuses. The R & D expenditure rate is 1.9% (- 0.1pct); the financial expense rate is-1.2% (+ 0.7pct). The company's overall period expense rate increased by 2.6pct compared with the same period last year. Overall, the company's period expenses are under short-term pressure. Comply with the market demand, constantly optimize the product and customer structure. With the continuous expansion of the company's business in recent years, customers have covered passenger and commercial vehicle customers. It has built up a customer base of high-quality vehicle and power platforms in the industry, such as Changan Ford, ideal Xinchen, China FAW, Jiangling Ford, Geely Motor, Changan Automobile, Dongan Power, Liuzhou Wuling, SAIC General Wuling, BAIC Foton and so on. With the increase in the number of customers, the further optimization of customer structure and the increasing abundance of product categories, the company's products extend from fuel engines and transmission core components to new energy hybrid engine core components, transmission care parts and motor shells and other brand-new products, which can meet the needs of different vehicles such as fuel, hybrid and pure electric vehicles to varying degrees, and adapt to the market. To achieve a high-quality integration with the frontier development of the industry. Set up a subsidiary company, Meili Qin'an, to steadily promote the R & D landing of the company's new energy drive plate. In order to meet the market demand, in 2018, the company launched the "reengineering and upgrading" strategy and set up a subsidiary, Metro Qin'an, to enter the new energy field and engage in the R & D and production of hybrid drive system products. The company steadily promotes the research and development of hybrid drive system products according to the plan, and has completed the development and manufacture of special engine, motor and reducer samples, and completed the prototype assembly of motor controller. part of the performance and durability tests of the engine and reducer have also been completed, and the co-adjustment of the software and hardware of the motor and motor controller is being promoted. At the same time, on the basis of the existing hybrid drive system dual-motor reducer development platform, the single-motor reducer and electric drive assembly products which can be used in pure electric vehicles are developed to expand the product use scene. In addition, the construction of new energy vehicle drive system base for R & D and production of hybrid drive system assembly has also achieved phased results. Actively expand the market space and constantly tap the incremental business. In 2023, the company continued to actively expand the market space, including Changan Ford part of the transmission box, cylinder head export orders (through Changan Ford export to North American Ford), including a number of projects. At the same time, some pure electricity and hybrid customers in the new energy field have been invited to make quotations. The company's overseas business also continues to advance. The company has a branch in North America to facilitate direct communication between the company and the mainstream car companies in North America. In the future, the company will continue to maintain good communication with potential customers, rely on technical and technological capabilities and other advantages, continue to actively explore new market opportunities. Maintain the "overweight" investment rating. The company is gradually transforming to the new energy market, and the products can meet the needs of different models, such as fuel, hybrid, pure electric and so on. As the company continues to develop new energy hybrid drive systems, continue to stabilize and expand customers, and continue to optimize product structure, new energy vehicles will become the company's second growth pole. It is estimated that the company's 24-26-year net profit will be 3.5 billion yuan respectively, maintaining the "overweight" investment rating. Risk tips: the risk of unstable industry policy; the development of new energy business is not as expected; the risk of customer concentration is too high; the risk of falling product prices; the risk of raw material price fluctuations. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.
[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.