Xiantong Stock(603239) 德邦证券·2024-07-02 00:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [2][17]. Core Views - The company is expected to achieve significant profit growth, with projected net profits for 2024-2026 being CNY 237 million, CNY 330 million, and CNY 394 million respectively, reflecting a strong increase in profitability [2][4]. - The company is actively expanding its production capacity and has successfully secured new projects, which is anticipated to enhance its market share [11][20]. - The company has a robust order backlog, with 42 new projects under development, indicating a stable revenue growth trajectory [10][19]. Financial Summary - The company's revenue is projected to grow from CNY 1,066 million in 2023 to CNY 2,105 million by 2026, with a compound annual growth rate (CAGR) of approximately 32.8% [3][4]. - The gross margin is expected to improve from 29.4% in 2023 to 33.7% in 2026, reflecting better cost control and product mix [4][20]. - The net profit margin is projected to increase from 14.2% in 2023 to 18.7% in 2026, indicating enhanced profitability [4][20]. Market Performance - The company's stock has shown a relative performance of -34% compared to the CSI 300 index, indicating a need for improvement in market perception [2][9]. - The stock price has fluctuated between CNY 9.90 and CNY 17.99 over the past 52 weeks, suggesting volatility in market sentiment [3].