XUSHENG(603305) GOLDEN SUN SECURITIES·2024-10-31 08:15Investment Rating - The report maintains a "Buy" rating for the company [2][5]. Core Views - The company experienced revenue of 3.274 billion yuan in the first three quarters of 2024, a year-on-year decrease of 8.4%, and a net profit attributable to the parent company of 323 million yuan, down 42.8% year-on-year [1]. - The actual controller is planning to transfer shares, which may lead to a change in control of the company [1]. - The company's Q3 2024 performance was impacted by weak customer sales, rising raw material prices, and increased convertible bond interest expenses [1][2]. - The company has a strong order backlog and is well-positioned in the lightweight manufacturing sector with capabilities in die-casting, forging, and extrusion [2]. Financial Performance Summary - In Q3 2024, the company achieved revenue of 1.13 billion yuan, with a year-on-year decrease of 7.4% and a quarter-on-quarter increase of 11.4%. The net profit for the quarter was 58 million yuan, down 66% year-on-year and 46% quarter-on-quarter [1]. - The gross margin for Q3 2024 was 18.2%, a decrease of 7.1% year-on-year and 3.4 percentage points quarter-on-quarter, primarily due to raw material price increases [2]. - The total revenue forecast for 2024-2026 is 4.695 billion yuan, 5.681 billion yuan, and 6.761 billion yuan respectively, with net profits of 452 million yuan, 568 million yuan, and 680 million yuan, corresponding to P/E ratios of 26.8, 21.4, and 17.9 [2][4]. Market Position and Strategy - The company is strategically positioned to benefit from the growing demand in the energy storage sector and its global expansion efforts, particularly in North America and Europe [2]. - Key clients include major automotive manufacturers such as Tesla, Li Auto, NIO, and XPeng, as well as Tier 1 suppliers like ZF and Valeo [2].