HASCO(600741) 海通证券·2024-05-08 03:32Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1][3] Core Views - The company reported a revenue of 37 billion yuan in Q1 2024, showing a year-on-year increase of 0.6%, while the net profit attributable to shareholders was 1.26 billion yuan, a decrease of 12% year-on-year [3] - The gross margin for Q1 2024 was 12.54%, down 1.34 percentage points from the same period in 2023, and the net profit margin was 3.87%, down 0.71 percentage points year-on-year [3] - The company maintained revenue stability despite a decline in production from major clients, indicating resilience in its revenue generation [3] - The functional components segment showed strong profitability, contributing 42% to the net profit attributable to shareholders [3] - The company has a strong cash flow position with limited capital expenditure needs, indicating robust operational efficiency [3] Financial Summary - Revenue projections for the company are estimated to reach 176.2 billion yuan in 2024, 182.5 billion yuan in 2025, and 189.1 billion yuan in 2026, with net profits of 7.55 billion yuan, 8.10 billion yuan, and 8.82 billion yuan respectively [4][6] - The earnings per share (EPS) are projected to be 2.39 yuan in 2024, 2.57 yuan in 2025, and 2.80 yuan in 2026 [4][6] - The company’s price-to-earnings (P/E) ratio is expected to be approximately 6.9 for 2024, indicating a favorable valuation compared to industry peers [3][6] Valuation Assessment - The reasonable P/E range for the company in 2024 is estimated to be between 8 to 10 times, corresponding to a fair value range of 19.16 to 23.95 yuan per share [3] - The company’s financial metrics indicate a healthy balance sheet with a projected return on equity of 12.1% in 2024 [4][6]