Xingyu Co.,Ltd(601799) 民生证券·2024-08-15 16:00Investment Rating - The report maintains a "Recommend" rating for Xingyu Co Ltd (601799 SH) with a current price of 116 36 yuan [3] Core Viewpoints - Xingyu Co Ltd achieved significant revenue and profit growth in H1 2024 with revenue of 5 717 billion yuan (+29 20% YoY) and net profit attributable to shareholders of 594 million yuan (+27 34% YoY) [3] - In Q2 2024 the company's revenue reached 3 304 billion yuan (+32 07% YoY +36 98% QoQ) and net profit attributable to shareholders was 351 million yuan (+33 61% YoY +44 77% QoQ) [3] - The company's gross margin in Q2 2024 was 20 37% (-1 53pct YoY +0 73pct QoQ) and net margin was 10 64% (+0 13pct YoY +0 58pct QoQ) [3] - Xingyu Co Ltd is the exclusive supplier of front and rear lamp assemblies for the AITO M9 a flagship SUV under the Harmony Smart Drive brand contributing significantly to the company's revenue growth [3] - The company is actively engaged in R&D with 38 new vehicle model projects in H1 2024 focusing on advanced lighting technologies such as DLP projection smart headlights and Micro LED/Mini LED based interactive lighting systems [3] Financial Projections - Revenue is projected to grow from 12 706 billion yuan in 2024 to 19 169 billion yuan in 2026 with a CAGR of 22 1% [5] - Net profit attributable to shareholders is expected to increase from 1 443 billion yuan in 2024 to 2 373 billion yuan in 2026 with a CAGR of 27 2% [5] - EPS is forecasted to rise from 5 05 yuan in 2024 to 8 31 yuan in 2026 [5] - The company's PE ratio is expected to decrease from 23x in 2024 to 14x in 2026 indicating potential undervaluation [5] Industry Analysis - The automotive lighting industry is a high-quality segment within the auto parts sector with continuous technological advancements driving value growth [3] - The transition from traditional lighting technologies (halogen xenon) to advanced systems (LED ADB DLP) has significantly increased the average price per headlight from hundreds to thousands of yuan [3] - The trend towards electrification and intelligence in vehicles is expected to further boost the volume price and profitability of automotive lighting products [4]