Core Viewpoint - Huihan Co., Ltd. has demonstrated steady growth in its financial performance, with a focus on the eCall national standard policy process, leading to a "buy" rating from Minsheng Securities [1][3]. Financial Performance - In 2024, Huihan achieved a revenue of 1.022 billion yuan, a year-on-year increase of 25.68%, and a net profit attributable to shareholders of 175 million yuan, up 37.54% year-on-year [1]. - For Q1 2025, the company reported a revenue of 216 million yuan, representing a year-on-year growth of 16.85%, and a net profit of 43 million yuan, an increase of 30.67% year-on-year [1]. - The revenue from TBOX and eCall terminals reached 842 million yuan, a year-on-year increase of 32.19%, while IoT smart modules generated 136 million yuan, down 6.73% year-on-year [1]. - The gross margin for 2024 was 29.07%, an increase of 2.60 percentage points from 2023, and the net profit margin was 17.17%, up 1.48 percentage points from 2023 [1]. Research and Development - The company emphasizes R&D investment, with expenses reaching 67 million yuan in 2024, a year-on-year growth of 22.84% [2]. - Ongoing projects include NG-eCall and 5G R16 communication modules, aimed at maintaining leadership in the eCall sector and increasing market penetration in 5G [2]. - As of the report date, the company holds a total of 170 intellectual property rights [2]. Market Position and Policy Engagement - Huihan is a leading domestic player in the eCall market, with high technical requirements for eCall terminals, which are now mandatory in several regions including the EU and UAE [3]. - The company is one of the few that has obtained certifications from the EU, UN, and UAE, facilitating exports of eCall terminals for domestic vehicles [3]. - The Chinese version of the eCall standard (AECS) is under development, with Huihan participating in its drafting, which could significantly expand market opportunities once implemented [3]. - In 2024, China's automobile export volume was 5.859 million units, while domestic sales reached 31.436 million units [3]. Investment Outlook - The company is expected to benefit from the growth of domestic passenger vehicle production and sales, as well as advancements in automotive intelligence [3]. - Forecasted net profits for 2025, 2026, and 2027 are 231 million yuan, 309 million yuan, and 448 million yuan, respectively, with corresponding price-to-earnings ratios of 53, 40, and 27 times [3].
民生证券：给予慧翰股份买入评级