1Q24 results are in line with our expectations the company announced 1Q24 results: revenue compared with the month-on-month + 5Americanpoker.3% /-18.8% to 780 million yuan, the net profit returned to the mother is 12.0% to 44.16 million yuan compared with the previous month, and the non-return net profit is 20.6% to 42.79 million yuan compared with the previous month, which is in line with our expectations. The development trend 1Q24 company revenue is sound, the operating cash flow improves. Refer to the China Automobile Association, the wholesale sales of the 1Q24 domestic passenger car industry are 28% to 5.647 million vehicles compared with the previous month, and the wholesale sales of the new energy passenger car industry are 35% to 2.003 million vehicles compared with the previous month. Compared with the growth rate of the industry, the company's 1Q24 revenue lost compared with the same period last year and outperformed on a month-on-month basis, which we think is mainly affected by the depots and overlay channels of 1Q24 manufacturers. The company's 1Q24 operating cash flow is 46.77 million yuan, exceeding the return net profit level, a year-on-year increase, with Capex reaching 130 million yuan, a quarterly record high, reflecting the company's greater efforts to expand production. Against the backdrop of rising raw material costs, gross profit margin remains resilient, and the cost rate is lower than the previous month. Referring to the Guojin metal net, the spot price of electrolytic copper (including tax) the average 1Q24 price is 69400 yuan, with a month-on-month ratio of + 1.2% plus 5.8%. The company adopts the pricing method of "copper price + processing fee". The copper price accounts for about 85% of the cost.AmericanpokerIn the context of 1Q24, the gross profit margin (before tax and additional) is + 2.0pct/+0.8pct to 13.4%, mainly due to the release of economies of scale brought about by increased sales and the increase in the proportion of high-voltage cable products. The company's 1Q24 sales / R & D / management / financial expense rate is 0.7%, 2.7%, 2.0%, 1.5%, a total of 6.9%, with a month-on-month ratio of + 0.4pct/-0.6pct. Rapid expansion of production capacity, expansion of high-quality customers, optimistic about the steady growth of the company's performance. The company has six major production bases in Ningbo, Zhejiang / Benxi, Liaoning, Chengdu, Sichuan / Shanghai / Huizhou, Guangdong / Macheng, Hubei. In January 2024, the company announced that it intends to invest in the construction of a production base in Mexico to expand the North American market and customers. According to the 2023 annual report, the Benxi Phase II plant of the company has officially entered the stage of reaching production, the Hubei factory has been completed and accepted, and the pilot production stage has begun, and the Ninghai plant expansion project has entered the construction stage of the plant. At the same time, the company's customers cover mainstream car companies at home and abroad, and have entered the supply chain of new energy vehicles such as BYD, Tesla, ideal, Xiaomi, Huawei and so on. We are optimistic about the rapid growth of revenue and profit under the advantages of production capacity and customers. Earnings forecasts and valuations remain unchanged in 2024 Universe 2025 earnings forecasts. Maintain an industry rating that outperforms. The current share price corresponds to 17.4 Universe 14.4 times 2024 Placement 2025. Keep the target price unchanged at 51.50 yuan, corresponding to 21.0 apiece, 17.4 times 2024 Placement E in 2025, with 20.7% upside space compared to the current one. Risk copper price fluctuation risk, capacity climbing is not as expected, profitability improvement is not as expected. [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.
