Xingyu Co.,Ltd(601799) Guohai Securities·2024-10-28 15:31Investment Rating - The investment rating for the company is "Buy" (maintained) [2][7]. Core Views - The company has shown significant revenue and profit growth in Q3 2024, with revenue reaching 3.509 billion yuan, representing a year-on-year increase of 24.77% and a quarter-on-quarter increase of 6.19%. The net profit attributable to shareholders was 383 million yuan, up 21.60% year-on-year and 8.96% quarter-on-quarter [2]. - The company benefits from increased sales from core independent customers, with notable sales growth from key clients such as Li Auto, Seres, and Chery, which saw quarter-on-quarter sales increases of 41%, 12%, and 14% respectively [2]. - The company's gross margin for Q3 2024 was 19.94%, with a net margin of 10.91%, indicating a slight improvement in profitability despite a minor decline in gross margin compared to previous periods [2]. - The company is positioned as a leading domestic automotive lighting enterprise, with ongoing projects in advanced lighting technologies and a growing customer base, including new energy vehicle clients [2][5]. Summary by Sections Recent Performance - In Q3 2024, the company achieved a revenue of 3.509 billion yuan, with a year-on-year growth of 24.77% and a quarter-on-quarter growth of 6.19%. The net profit was 383 million yuan, reflecting a year-on-year increase of 21.60% and a quarter-on-quarter increase of 8.96% [2]. - The company has a diverse customer base, including luxury brands and domestic manufacturers, which has contributed to its revenue growth [2]. Financial Metrics - The company’s gross margin was 19.94%, with a net margin of 10.91%. The expense ratio improved to 8.12%, indicating better cost management [2]. - The company’s total market capitalization is approximately 42.35 billion yuan, with a current stock price of 148.25 yuan [2]. Earnings Forecast - The company is expected to achieve revenues of 12.9 billion yuan, 15.9 billion yuan, and 19.2 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 1.484 billion yuan, 1.911 billion yuan, and 2.388 billion yuan [5][7]. - The projected EPS for the same years is 5.20 yuan, 6.69 yuan, and 8.36 yuan, with a P/E ratio decreasing from 28.54 to 17.74 over the forecast period [5][7].