Xingyu Co.,Ltd(SH:601799) Guoxin Securities·2024-08-16 05:06Investment Rating - The report maintains an "Outperform" rating for the company [5][3]. Core Insights - The company has entered a new growth cycle following a comprehensive adjustment of its customer structure, shifting from joint ventures with German and Japanese brands to focusing on domestic and new energy vehicle clients [1][6]. - In Q2 2024, the company achieved a record high revenue of 3.5 billion yuan, representing a year-on-year increase of 34%, with a total revenue of 57.17 billion yuan for H1 2024, up 29.2% year-on-year [1][6]. - The company's revenue growth outpaced the automotive industry by 28 percentage points in Q2 2024, driven by the increase in existing customer sales and the launch of new models from various brands [1][13]. Financial Performance - For H1 2024, the company reported a gross margin of 20.06% and a net margin of 10.40%, with Q2 2024 gross margin at 20.37% and net margin at 10.64% [1][8]. - The company adjusted its revenue forecasts for 2024, 2025, and 2026 to 132.7 billion, 163.2 billion, and 205.4 billion yuan respectively, while lowering net profit estimates to 14.5 billion, 18.5 billion, and 23.8 billion yuan for the same years [3][4]. Market Trends - The automotive lighting industry is experiencing a trend towards electronic and intelligent features, with advancements in headlight technology such as ADB and DLP systems [16][18]. - The average price of the company's lighting products increased by 25% in 2023, reflecting the industry's overall price growth [2][6]. Global Expansion - The company is enhancing its global footprint with the establishment of subsidiaries in Serbia, Mexico, and the USA, which supports its international market expansion [1][31]. - In H1 2024, the company secured 38 new model development projects, successfully launching 22 of them, indicating strong future growth potential [27][30].