Xingyu Co.,Ltd(SH:601799) Capital Securities·2024-08-22 07:01Investment Rating - The investment rating for the company is "Buy" [2] Core Views - The company has exceeded expectations in its H1 2024 performance, with revenue reaching 5.717 billion yuan, a year-on-year increase of 29.20%, and a net profit attributable to shareholders of 594 million yuan, up 27.34% year-on-year [4] - The company has launched multiple new projects, with 38 new models and 22 projects entering mass production, contributing to significant revenue growth [4] - Profitability has improved, with a net profit margin of 10.64% in Q2 2024, reflecting a sequential increase [4] - The company is transitioning towards electronic and intelligent automotive lighting, enhancing product offerings and safety features [4] - The customer base is shifting towards leading new energy vehicle manufacturers, which is expected to drive revenue growth alongside core customer sales [4] - The company is expanding its global footprint, with new production capacities in Serbia and registrations in Mexico and the USA [4] - The integration of the supply chain and extension of the industrial chain are anticipated to enhance profitability [4] - The company is positioned in a high-quality segment of the automotive lighting market, with projected revenues of 13.21 billion, 16.79 billion, and 20.09 billion yuan for 2024-2026, respectively [4] Financial Summary - Revenue for 2023 is projected at 10.248 billion yuan, with a growth rate of 24.3% [5] - The net profit attributable to shareholders is expected to be 1.102 billion yuan in 2023, with a growth rate of 17.1% [5] - The company’s earnings per share (EPS) is forecasted to be 3.86 yuan in 2023, increasing to 5.06 yuan in 2024 [5] - The price-to-earnings (P/E) ratio is projected to decrease from 30.0 in 2023 to 22.9 in 2024, indicating a more attractive valuation over time [5]