GENVICT(002869) 海通国际·2024-09-27 08:03Investment Rating - The report assigns an "Outperform" rating to the company with a 2024 target price of RMB 28.35 [4][9] Core Views - The company is expected to benefit from the accelerating development of the intelligent connected vehicle and car-road collaboration industries, driven by favorable government policies [4][9] - The company has a deep layout in the car-road collaboration industry chain, including V2X series products, V2X edge system integration products, cloud platforms, and C-V2X in-vehicle HMI systems [2][9] - The digital transformation of smart highways is accelerating, with government support aiming to improve demonstration channel efficiency by 20% and emergency response efficiency by 30% [2][9] Financial Performance - 2024 H1 revenue reached RMB 228 million, up 2.52% YoY, with net profit attributable to shareholders at RMB 16 million, up 90.19% YoY [1][9] - 2024 H1 gross profit margin improved to 36.40% from 31.36% last year, driven by product sales structure adjustment [1][9] - 2024 H1 smart highway revenue was RMB 162 million, down 14.41% YoY, while automotive electronics revenue surged 147.82% YoY to RMB 54 million [1][9] Industry Trends - The intelligent connected vehicle industry is entering a critical period, with over 32,000 kilometers of open test roads and over 7,700 test licenses issued as of July 2024 [2][9] - 20 cities, including Beijing, Wuhan, and Chongqing, are accelerating car-road-cloud integration, marking a significant step in the industrialization of intelligent connected vehicles [2][9] - The government aims to support 30 demonstration areas over three years, targeting 85% of busy national highways, 25% of busy national roads, and 70% of important national high-grade waterways for digital transformation [2][9] Business Segments - The company's products are mainly used in the car-road collaboration industry chain, with customers including traditional car manufacturers, NEV manufacturers, internet car companies, highway owners, and smart city pilot areas [4][9] - The company's smart highway segment accounted for 71.09% of 2024 H1 revenue, while automotive electronics contributed 23.67% [1][9] - The company is expected to see continued growth in its automotive electronics segment, with a projected 45% YoY revenue increase in 2025 [6] Valuation and Forecasts - The company's 2024-2026 net profit is forecasted to be RMB 78/114/148 million, with EPS of RMB 0.44/0.64/0.82 [4][9] - The company's 2024E revenue is projected to reach RMB 592 million, with a 15.5% YoY growth, and 2025E revenue is expected to grow 46.9% YoY to RMB 870 million [3][6] - The company's 2024E gross profit margin is forecasted at 35.8%, with a gradual improvement to 37.7% by 2026 [3][6]