Xingyu Co.,Ltd(601799) Guoxin Securities·2024-10-27 12:19Investment Rating - The investment rating for the company is "Outperform the Market" [3][5]. Core Views - The company has entered a new growth cycle in 2024 after undergoing customer structure adjustments from 2021 to 2023, shifting focus from joint ventures with German and Japanese brands to domestic and new energy vehicle clients [1][5]. - In Q3 2024, the company achieved a record high revenue of 3.8 billion yuan, representing a 22% year-on-year increase, with a total revenue of 9.77 billion yuan for the first three quarters, up 25.02% year-on-year [1][5]. - The company’s revenue growth outpaced the passenger car industry by 27 percentage points, indicating strong performance despite a decline in overall passenger car production [1][5]. Summary by Sections Financial Performance - In Q3 2024, the company reported a net profit margin of 10.91%, with a slight increase of 0.27% quarter-on-quarter [2][8]. - The gross profit margin for the first three quarters of 2024 was 20.02%, down 1.47 percentage points year-on-year, while the net profit margin was 10.59%, down 0.21 percentage points year-on-year [2][8]. - The company’s revenue for 2024 is projected to be 132.7 billion yuan, with net profits expected to reach 14.5 billion yuan [3][4]. Market Position and Growth - The company has successfully transitioned to a new customer base, focusing on domestic brands and new energy vehicles, which has led to a significant increase in revenue [1][5]. - The company has secured 38 new model development projects in the first half of 2024, with 22 projects entering mass production [21][24]. - The company is expanding its global footprint with new operations in Serbia, Mexico, and the United States, enhancing its capacity to serve international clients [26]. Product Development and Innovation - The company is actively developing new technologies, including DLP projection headlights and smart lighting solutions, in collaboration with industry partners like Huawei and other tech firms [15][20]. - The company’s product average price increased by 25% in 2023, reflecting the ongoing upgrade of automotive lighting products [2][5]. - The company is focusing on enhancing its product offerings through strategic partnerships and technological advancements in automotive lighting and electronic systems [14][15].