XUSHENG(SH:603305) Changjiang Securities·2024-09-09 06:10Investment Rating - The report maintains a "Buy" rating for the company [9][7]. Core Views - The company is currently undergoing a customer and product transformation period, with Q2 revenue of 1.01 billion yuan, down 14.9% year-on-year and 11.3% quarter-on-quarter, and a net profit attributable to shareholders of 110 million yuan, down 46.5% year-on-year and 31.6% quarter-on-quarter [6][5]. - The company has proactively entered the new energy vehicle components sector, focusing on die-casting, forging, and extrusion processes, with a diverse product range. The upcoming boom in North American new energy presents significant lightweighting demands, and the establishment of a factory in Mexico is expected to further expand global market share [6][7]. - Looking ahead, the company aims to deepen its presence in the lightweight sector and is expected to evolve into a global aluminum platform enterprise [7]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue of 2.15 billion yuan, a decrease of 9.0% year-on-year, and a net profit of 260 million yuan, down 32.78% year-on-year [5][6]. - In Q2, domestic revenue was 1.22 billion yuan (56.9% of total revenue), while overseas revenue was 930 million yuan (43.1% of total revenue). Automotive revenue accounted for 88.7% of total revenue [6]. - The gross margin for the first half of 2024 was 22.8%, down 2.2 percentage points year-on-year, with Q2 gross margin at 21.6%, down 2.6 percentage points year-on-year [6]. Market Position and Strategy - The company is enhancing its global supply chain flexibility and production capabilities in North America through the establishment of a new factory in Mexico, which is expected to support customer production and service capabilities [6][7]. - The company is diversifying its customer base and expanding its product matrix, with a focus on integrated automotive components and energy storage sectors [7]. Future Outlook - The company is projected to achieve net profits of 620 million yuan, 770 million yuan, and 1.07 billion yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 13.6X, 11.0X, and 7.9X [7].