SONGYUAN(300893) 申万宏源·2024-08-02 01:01Investment Rating - The investment rating for the company is "Buy" (maintained) [3][4]. Core Views - The company plans to raise up to 410 million yuan through a convertible bond issuance to expand its production capacity for airbags and steering wheels, which will add 1.3 million sets of steering wheel assemblies and 4 million sets of airbag assemblies over a 24-month construction period [3]. - The company has secured significant contracts with a well-known European automaker, totaling 5.256 billion yuan over an 8-year lifecycle, indicating a strong position in the global automotive supply chain [3]. - The company has demonstrated strong growth potential, with a compound annual growth rate (CAGR) of 34% in revenue from 2020 to 2023, and is expected to continue this trend with new international orders [3][4]. Financial Summary - Revenue projections for 2024-2026 have been increased to 1.79 billion, 2.31 billion, and 3.41 billion yuan respectively, with corresponding net profit estimates raised to 300 million, 387 million, and 512 million yuan [4]. - The company’s revenue growth rates are projected at 40.0%, 28.8%, and 47.6% for 2024, 2025, and 2026 respectively [4]. - The earnings per share (EPS) is expected to rise from 0.88 yuan in 2023 to 2.26 yuan by 2026 [4][8]. Market Data - The closing price of the company's stock is 27.40 yuan, with a market capitalization of 3,096 million yuan [5]. - The price-to-earnings (P/E) ratio is projected to be 21x, 16x, and 12x for 2024, 2025, and 2026 respectively [4][5]. Operational Highlights - The company has a strong gross margin of over 30% in its seatbelt business, indicating robust profitability [3]. - The company has been actively expanding its product offerings and market share in the passive safety sector, which is characterized by high barriers to entry [3].