Xingyu Co.,Ltd(SH:601799) Ping An Securities·2024-08-16 07:37Investment Rating - The report maintains a "Recommended" investment rating for the company [3][8]. Core Views - The company's performance growth is driven by the increase in sales from independent new energy customers, despite a high proportion of joint venture brand support [4][8]. - The company is a significant supplier of automotive lighting systems, with a strong vertical integration capability in design, development, and manufacturing [8]. - The company has expanded its overseas market presence, with a factory in Serbia and operations in North America to enhance service capabilities for local clients [5][8]. Financial Performance - In the first half of 2024, the company achieved revenue of 5.72 billion yuan, a year-on-year increase of 29.2%, and a net profit attributable to shareholders of 590 million yuan, up 27.3% year-on-year [4]. - The second quarter of 2024 saw revenue of 3.30 billion yuan, with year-on-year growth of 37.0%, and a net profit of 350 million yuan, reflecting a year-on-year increase of 44.8% [4]. - The company plans to distribute a dividend of 2.0 yuan per 10 shares (tax included) for the first half of 2024 [4]. Future Projections - Revenue projections for 2024 to 2026 are set at 13.91 billion yuan, 17.62 billion yuan, and 21.01 billion yuan, respectively, with corresponding net profit estimates of 1.48 billion yuan, 1.92 billion yuan, and 2.38 billion yuan [5][10]. - The company is expected to maintain a steady growth trajectory, with net profit growth rates projected at 34.3% for 2024 and 29.5% for 2025 [11]. Market Position - The company is positioned as one of the largest comprehensive solutions providers for automotive lighting systems in China, benefiting from the increasing value of automotive lighting as vehicles become more intelligent [8]. - The company has a diversified customer base, including traditional independent brands and new energy vehicle manufacturers, which supports its revenue growth [4][5].