Xinquan Automotive Trim(603179) Soochow Securities·2024-11-01 17:39Investment Rating - The report maintains a "Buy" rating for the company [1][4]. Core Views - The company reported Q3 2024 earnings that exceeded expectations, with a revenue of 34.41 billion yuan, a year-on-year increase of 28.08% and a quarter-on-quarter increase of 10.39% [2][3]. - The net profit for Q3 2024 was 2.75 billion yuan, reflecting a year-on-year growth of 47.98% and a quarter-on-quarter growth of 33.14% [2][3]. - The company is positioned as a leading player in the domestic interior parts market, with a focus on expanding its product offerings and enhancing its global presence [4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a total revenue of 96.05 billion yuan, representing a year-on-year growth of 31.24%, and a net profit of 6.86 billion yuan, up 22.22% year-on-year [2]. - The Q3 2024 gross margin was reported at 21.35%, an increase of 1.49 percentage points from the previous quarter, attributed to improved profitability from new projects [3]. - The company’s operating expenses ratio for Q3 2024 was 11.69%, with specific expense ratios for sales, management, R&D, and financial expenses being 1.95%, 4.05%, 4.27%, and 1.42% respectively [3]. Earnings Forecast and Valuation - The earnings forecast for the company is set at 10.55 billion yuan, 13.91 billion yuan, and 18.05 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 2.17 yuan, 2.85 yuan, and 3.70 yuan [4]. - The projected P/E ratios for 2024, 2025, and 2026 are 23.06, 17.49, and 13.48 respectively [4].