Xingyu Co.,Ltd(SH:601799) Guohai Securities·2024-08-16 12:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant growth in revenue and profit in Q2 2024, with a year-on-year revenue increase of 32.07% and a net profit increase of 33.61% [2][3] - The company's profitability has improved, with gross and net profit margins increasing to 20.37% and 10.64% respectively in Q2 2024 [3] - The company is benefiting from increased sales from core customers, particularly in the domestic market, which is becoming a major driver of revenue growth [3] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 5.417 billion yuan, a year-on-year increase of 29.20%, and a net profit of 594 million yuan, up 27.34% [2] - For Q2 2024, revenue reached 3.304 billion yuan, with a year-on-year growth of 32.07% and a quarter-on-quarter growth of 36.98% [2] - The net profit for Q2 2024 was 351 million yuan, reflecting a year-on-year increase of 33.61% and a quarter-on-quarter increase of 44.77% [2] Profitability and Cost Management - The company's gross margin and net margin improved to 20.37% and 10.64% respectively in Q2 2024, with significant reductions in various expense ratios [3] - The sales, management, R&D, and financial expense ratios decreased, indicating effective cost management [3] Market Position and Customer Base - The company has established a diverse customer base, including partnerships with luxury brands and domestic automakers, which has helped mitigate the impact of declining sales from joint venture brands [3] - The sales performance of key customers in Q2 2024 indicates a mixed trend, with some domestic brands showing significant growth [3] Future Outlook - The company is projected to achieve revenues of 12.944 billion yuan, 15.931 billion yuan, and 19.213 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 26%, 23%, and 21% [5][6] - The forecasted net profit for the same period is expected to be 1.523 billion yuan, 1.922 billion yuan, and 2.405 billion yuan, with growth rates of 38%, 26%, and 25% [5][6]