Xinquan Automotive Trim(SH:603179) Huachuang Securities·2024-09-03 02:23Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 53.3 CNY, compared to the current price of 36.80 CNY [2]. Core Views - The company reported a net profit of 206 million CNY in Q2 2024, a year-on-year decrease of 7.7% but a quarter-on-quarter increase of 1.1%. The revenue for Q2 2024 was 3.12 billion CNY, reflecting a year-on-year growth of 27% and a quarter-on-quarter increase of 2.3% [2]. - The company is expanding its product categories and accelerating its globalization efforts, aiming to become a leading player in multi-category interior and exterior automotive parts [2]. Financial Performance Summary - Revenue Growth: The company achieved a revenue of 10.57 billion CNY in 2023, with projected revenues of 13.36 billion CNY in 2024, 16.76 billion CNY in 2025, and 20.62 billion CNY in 2026, indicating a year-on-year growth rate of 52.2% in 2023 and a projected growth rate of 26.3% in 2024 [3]. - Net Profit: The net profit for 2023 was 805 million CNY, with projections of 1.04 billion CNY in 2024, 1.40 billion CNY in 2025, and 1.83 billion CNY in 2026, showing a significant year-on-year growth of 71.2% in 2023 and 28.9% in 2024 [3]. - Earnings Per Share (EPS): The EPS is expected to rise from 1.65 CNY in 2023 to 2.13 CNY in 2024, 2.87 CNY in 2025, and 3.75 CNY in 2026 [3]. Strategic Initiatives - Product Expansion: The company is actively expanding its product categories, particularly in exterior parts, with significant revenue growth in new product lines [2]. - Domestic and International Expansion: The company is enhancing its domestic production capabilities and expanding into North America and Europe, with new facilities and increased production capacity planned for 2024 and beyond [2]. - Financial Management: The company has managed to stabilize its operational expenses while facing foreign exchange losses, which impacted its financial results [2].