Xingyu Co.,Ltd(601799) Great Wall Securities·2024-10-28 10:43Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of 5% to 15% relative to the industry index over the next six months [9]. Core Views - The company demonstrated strong earnings resilience in Q3 2024, with revenue reaching 9.225 billion and a year-on-year growth of 27.5%. The net profit attributable to shareholders was 977 million, up 25.0% year-on-year [1]. - The report highlights the optimization of customer structure and the ramp-up of new projects as key drivers for future growth [1]. Financial Performance Summary - Revenue: The company achieved revenue of 35.09 billion in Q3 2024, with a year-on-year increase of 24.8% and a quarter-on-quarter increase of 6.2% [1]. - Net Profit: The net profit for Q3 2024 was 383 million, reflecting a year-on-year growth of 21.6% and a quarter-on-quarter growth of 9.0% [1]. - Profit Margins: The gross margin for Q3 2024 was 19.9%, with a slight decline compared to previous periods, while the net profit margin was 10.9% [1]. Future Projections - The company is projected to achieve revenues of 131.7 billion, 162.9 billion, and 197.2 billion for the years 2024, 2025, and 2026, respectively. Corresponding net profits are expected to be 14.2 billion, 17.9 billion, and 22.6 billion [1]. - The report anticipates a decrease in the price-to-earnings (P/E) ratio from 29.8 in 2024 to 18.7 in 2026, indicating improving valuation metrics [1]. Strategic Developments - The company is expanding its global customer base, transitioning from traditional automakers to new energy vehicle manufacturers and global car companies, with several projects set to launch from 2024 to 2026 [1]. - New product developments in smart automotive lighting and electronic technologies are underway, including innovations based on Micro LED and DMD technologies [1].