XINGYE TECH.(002674) 开源证券·2024-10-30 10:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a Q3 revenue of 752 million yuan, a year-on-year increase of 1.07%, while the net profit attributable to shareholders was 53 million yuan, a decrease of 34.86% [3] - For the first three quarters of 2024, the revenue reached 2.014 billion yuan, up 3.8% year-on-year, but the net profit attributable to shareholders fell by 37% to 109 million yuan [3] - Due to weak domestic demand affecting main business revenue and profits, the profit forecast has been revised downwards, with expected net profits for 2024-2026 at 160 million, 260 million, and 300 million yuan respectively [3] - The current stock price corresponds to a PE ratio of 16.3, 10.4, and 8.8 times for 2024, 2025, and 2026 respectively, with optimism about domestic demand improvement and international customer expansion [3] Summary by Sections Q3 Performance - Q3 revenue is expected to be 355 million yuan, down 7.8%, with a gross margin of 18.14%, a decrease of 2.6 percentage points [3] - The net profit for Q3 is projected at 11 million yuan, a significant drop of 75% due to decreased sales volume and market price pressure [3] Automotive Leather Segment - The automotive leather segment showed strong growth, with Q3 revenue expected to reach 221 million yuan, an increase of 31.26% [3] - The net profit for this segment is projected at 41.87 million yuan, up 41.85%, attributed to seasonal demand and improved cost management [3] Financial Metrics - The gross margin for Q3 is reported at 22.8%, down 0.9 percentage points, with a net profit margin of 7.0%, a decrease of 3.9 percentage points [4] - Operating cash flow for the first three quarters of 2024 improved to 170 million yuan compared to 5.56 million yuan in the same period of 2023 [4] Future Outlook - The company is focusing on expanding its export business, with overseas brand revenue contributing over 71 million yuan, a year-on-year increase of over 90% [3] - The expected production from the Indonesian factory in 2025 is anticipated to further increase the export ratio [3]