Chunqiu ET(603890) 中银证券·2024-05-20 09:00Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 8.84 and a sector rating of "Outperform" [1]. Core Insights - The company reported a revenue of RMB 3.257 billion in 2023, a decrease of 15.28% year-on-year, and a net profit attributable to shareholders of RMB 27 million, down 82.99% year-on-year. However, in Q1 2024, the company achieved a revenue of RMB 909 million, an increase of 30.88% year-on-year, and a net profit of RMB 14 million, up 149.78% year-on-year. The company is expected to benefit from the recovery in the notebook industry driven by AI PC demand and is actively expanding into telecommunications electronics and new energy vehicles, which opens up growth opportunities [4][15]. Summary by Sections Financial Performance - In 2023, the company faced pressure from declining demand in the notebook computer industry, leading to a revenue drop to RMB 3.257 billion and a net profit of RMB 27 million. The revenue from structural components was RMB 2.789 billion, down 12.84%, while telecommunications electronics revenue was RMB 257 million, down 23.58% [4][5]. - The company's gross margin for 2023 was 15.28%, a decrease of 1.67 percentage points, and the net margin was -0.06%, down 3.55 percentage points [4][5]. Market Outlook - The notebook industry is expected to recover due to the upcoming replacement cycle and the introduction of AI PC products, with global notebook shipments in Q1 2024 reaching 46.1 million units, a year-on-year increase of 7% [4]. - The company anticipates a recovery in performance, projecting revenues of RMB 3.965 billion, RMB 4.880 billion, and RMB 5.625 billion for 2024, 2025, and 2026, respectively, with net profits expected to be RMB 157 million, RMB 265 million, and RMB 377 million [4][7]. Strategic Initiatives - The company is leveraging opportunities in the new energy vehicle sector, focusing on lightweight, intelligent, and fashionable automotive electronics, which aligns with industry trends. The successful development of semi-solid injection molding technology positions the company to enter mass production of automotive electronic components [4][15]. Valuation - The report adjusts the earnings forecast for the company, estimating an EPS of RMB 0.36, RMB 0.60, and RMB 0.86 for 2024, 2025, and 2026, respectively. The current stock price corresponds to a PE ratio of 24.8, 14.7, and 10.3 for the respective years [4][7].