Xingyu Co.,Ltd(SH:601799) Southwest Securities·2024-08-16 08:33Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 5.717 billion yuan for H1 2024, representing a year-on-year increase of 29.2%, and a net profit attributable to shareholders of 594 million yuan, up 27.3% year-on-year [2] - The gross margin for H1 2024 was 20.1%, down 1.7 percentage points year-on-year, while the net margin was 10.4%, down 0.2 percentage points year-on-year [2] - The company significantly outperformed the industry in Q2 2024, with a revenue of 3.3 billion yuan, a year-on-year increase of 32.1% and a quarter-on-quarter increase of 37% [2] - The customer structure is continuously optimized, and effective cost control measures have been implemented, with a cost rate of 9.1% for H1 2024, down 0.6 percentage points year-on-year [2] Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of 5.717 billion yuan and a net profit of 594 million yuan, with a gross margin of 20.1% and a net margin of 10.4% [2] - In Q2 2024, the revenue was 3.3 billion yuan, with a net profit of 351 million yuan, marking a year-on-year increase of 33.6% and a quarter-on-quarter increase of 44.8% [2] Customer and Product Development - The company is expanding its customer base and optimizing its product offerings, with significant growth in sales for key clients such as Chery and NIO [2] - The average selling price (ASP) of products increased by 25.4% year-on-year to 162.1 yuan in 2023, driven by the transition to more advanced lighting technologies [2] Global Expansion - The company is accelerating its global layout, with production capacity in Serbia gradually being released and new entities established in Mexico and the United States to support overseas market expansion [2] - The company maintains a competitive edge due to its fully independent technology and cost advantages compared to foreign competitors [2] Earnings Forecast - The projected earnings per share (EPS) for 2024-2026 are 5.06, 5.99, and 7.10 yuan, respectively, with a corresponding price-to-earnings (PE) ratio of 23, 19, and 16 times [3] - The compound annual growth rate (CAGR) for net profit attributable to shareholders is expected to be 22.5% over the next three years [3]