USISH(601231) 西南证券·2024-05-06 01:33Investment Rating - The report assigns a "Buy" rating for the company with a target price of 19.26 CNY over the next six months [1][3]. Core Views - The company's Q1 2024 performance met expectations, with significant growth in cloud and storage, as well as automotive-related businesses. Revenue reached 13.49 billion CNY, a year-on-year increase of 3.8%, while net profit attributable to shareholders was 330 million CNY, up 20.6% year-on-year [2][11]. - The company is positioned as a leader in SiP miniaturization technology and has established long-term partnerships with major international electronics brands [8][9]. - The automotive electronics sector is expected to continue its high growth trajectory, supported by the company's extensive experience and recent acquisitions [2][3]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 13.49 billion CNY, with a year-on-year growth of 3.8%. The cloud and storage business saw a remarkable growth of 41.2%, while automotive electronics grew by 37.7% [2][11]. - The gross margin for Q1 2024 was approximately 9.6%, an increase of about 0.5 percentage points year-on-year, and the net margin was 2.5%, up 0.3 percentage points year-on-year [2][15]. - The company expects net profits for 2024-2026 to be 2.37 billion, 2.92 billion, and 3.42 billion CNY respectively, indicating a compound annual growth rate of about 21% [3][23]. Business Segments - The company’s revenue structure is shifting, with cloud and storage, and automotive electronics now accounting for 11.5% and 12.1% of total revenue, respectively [2][12]. - The automotive electronics segment is projected to grow at a compound annual growth rate of over 25% in the next three years, driven by the ongoing electrification and intelligence upgrades in the automotive industry [19][22]. Market Position and Strategy - The company has over 30 years of experience in the automotive electronics EMS field and has recently expanded its product offerings to include electric vehicle power systems and battery management systems [2][3]. - The report highlights the company's strategic focus on high-margin businesses, which is expected to enhance profitability as these segments grow [15][19].