Xingyu Co.,Ltd(SH:601799) Guotai Junan Securities·2024-10-28 08:23Investment Rating - The report maintains a target price of 172.23 CNY and an "Accumulate" rating for the company [1][6]. Core Views - The company's Q3 2024 performance met expectations, benefiting from the popularity of its self-owned brand products, with revenue and profit both showing growth [2][6]. - The company is expected to benefit from industry upgrades and a transformation in its customer structure, leading to improved profitability over time [2][6]. Financial Summary - For Q1-Q3 2024, the company achieved revenue of 9.23 billion CNY, a year-on-year increase of 27.5%, and a net profit attributable to shareholders of 980 million CNY, up 25.0% year-on-year [1][3]. - The Q3 2024 revenue was 3.51 billion CNY, reflecting a year-on-year growth of 24.8% and a quarter-on-quarter increase of 6.2% [1][3]. - The gross margin for Q1-Q3 2024 was 20.0%, a decrease of 1.47 percentage points year-on-year, while the net margin was 10.6%, down 0.21 percentage points year-on-year [1][3]. - The company’s cash flow from operating activities for Q3 2024 was 140 million CNY, significantly higher than 38 million CNY in the same period of 2023 [1][3]. Industry Outlook - The automotive lighting industry is undergoing continuous upgrades, with the company shifting its customer base towards self-owned brands and new energy vehicle clients, which is expected to drive rapid revenue growth [1][2]. - The introduction of high-priced intelligent products like ADB is anticipated to enhance the company's revenue and profitability as the scale effects from new energy clients become evident [1][2].