XUSHENG(603305) Xinda Securities·2024-09-02 08:00Investment Rating - The investment rating for the company is "Buy" [2][3] Core Views - The company's performance is under short-term pressure, with a focus on global expansion [2][4] - Revenue for H1 2024 was 2.149 billion, down 8.95% year-on-year, and net profit attributable to the parent company was 265 million, down 32.78% year-on-year [2][4] - The company is expected to achieve net profits of 571 million, 696 million, and 922 million for 2024, 2025, and 2026 respectively, with a year-on-year change of -20%, +22%, and +32% [3] Financial Performance Summary - Total revenue for 2022 was 4.454 billion, with a year-on-year growth of 47.3%, and is projected to reach 8.023 billion by 2026 [2][5] - The gross profit margin for Q2 2024 was 21.65%, a decrease of 2.16 percentage points quarter-on-quarter and 2.61 percentage points year-on-year [4] - The company issued 2.8 billion in convertible bonds in H1 2024, primarily for lightweight automotive components and new energy vehicle powertrains [4][5] Financial Metrics - The company's P/E ratio is projected to be 15 and 12 for 2024 and 2025 respectively, maintaining a "Buy" rating [3] - The ROE is expected to decline to 8.4% in 2024, before recovering to 10.9% by 2026 [2][5] - The EPS (diluted) is projected to be 0.61, 0.75, and 0.99 for 2024, 2025, and 2026 respectively [2][5]