Xingyu Co.,Ltd(601799) Huachuang Securities·2024-10-29 05:23Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 172.8 CNY, indicating an expected upside of 22% [1]. Core Views - The company reported a net profit of 383 million CNY for Q3 2024, representing a year-on-year increase of 22% and a quarter-on-quarter increase of 9% [1]. - Revenue for Q3 2024 reached 3.5 billion CNY, marking a new high with a year-on-year growth of 25% and a quarter-on-quarter growth of 6.2% [1]. - The company is expected to see a significant increase in revenue from new energy vehicles, with projections indicating that the revenue share from this segment could approach 40% by 2024 [1]. - The company is expanding its global footprint, with revenue from its European operations reaching 110 million CNY in 2023, and plans to enter the North American market [1]. Financial Summary - Total revenue for 2023 is projected at 10,248 million CNY, with expected growth rates of 29.1% in 2024, 22.2% in 2025, and 18.7% in 2026 [2]. - The net profit for 2023 is estimated at 1,102 million CNY, with growth rates of 27.6% in 2024, 30.0% in 2025, and 22.8% in 2026 [2]. - The company's earnings per share (EPS) is projected to increase from 3.86 CNY in 2023 to 7.86 CNY by 2026 [2]. - The price-to-earnings (P/E) ratio is expected to decrease from 37 in 2023 to 18 by 2026, indicating improved valuation metrics over time [2].