Chunqiu ET(603890) 东吴证券·2024-04-25 06:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark in the next six months [9][11]. Core Insights - The company's revenue for 2023 was 3.26 billion yuan, a decline of 15.3% year-on-year, with a net profit of 27 million yuan, down 83% year-on-year. However, Q4 2023 showed a significant recovery with revenue of 920 million yuan, up 15.4% year-on-year, and a net profit of 16 million yuan, up 140.4% year-on-year [1][11]. - The company is expanding its automotive magnesium-aluminum structural components business, which is crucial for vehicle lightweighting and enhancing electric vehicle range. The company possesses advanced semi-solid injection molding technology, giving it a competitive edge in this sector [2][11]. - The global PC industry is showing signs of recovery, with the AIPC (AI PC) trend expected to drive demand for structural components. The penetration of AIPC in the Chinese PC market is projected to rise from 8.1% in 2023 to 54.7% in 2024, potentially reaching 85% by 2027 [10][11]. Financial Summary - The company forecasts a significant increase in revenue, projecting 4.57 billion yuan in 2024, a growth of 40.34% year-on-year, and net profits of 225.5 million yuan, a staggering increase of 743.11% year-on-year [1][11]. - The projected P/E ratios for 2024, 2025, and 2026 are 16.3, 10.4, and 8.9 respectively, indicating a favorable valuation outlook as earnings are expected to recover [1][11]. - The report highlights a recovery in profitability, with Q4 2023 showing a gross margin of 18.5%, up 7.2 percentage points year-on-year, and a significant reduction in asset impairment losses compared to previous quarters [1][11].