XGIMI(688696) Tianfeng Securities·2024-11-03 06:07Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Views - The company experienced a revenue decline of 5.8% year-on-year in the first three quarters of 2024, with total revenue reaching 2.281 billion yuan. The net profit attributable to the parent company was -40 million yuan [1]. - In Q3 2024, the company reported a revenue of 682 million yuan, down 14.26% year-on-year, and a net profit of -44 million yuan [1]. - The weak domestic demand in the smart projection market is attributed to insufficient consumer interest in non-essential electronic products, exacerbated by market irregularities such as product mislabeling [1]. - The company is actively expanding its automotive parts business, securing contracts to supply components for new models from BAIC New Energy and Marelli, which is expected to open a second growth curve for the company [2][3]. Financial Performance Summary - The gross margin for the first three quarters of 2024 was 28.77%, down 4.04 percentage points year-on-year, while the net margin was -1.78%, a decrease of 5.32 percentage points [2]. - The company’s expense ratios for sales, management, R&D, and financial costs were 18.5%, 3.53%, 12.61%, and -1.42%, respectively, indicating an increase in expense ratios due to revenue pressure [2]. - The forecast for net profit attributable to the parent company for 2024-2026 is adjusted to 10 million, 90 million, and 200 million yuan, respectively, with corresponding dynamic P/E ratios of 438.2x, 52.9x, and 25.4x [3]. Market Context - The smart projection market in China saw a total sales volume of 1.27 million units in Q3 2024, a decline of 9.7% year-on-year, with sales revenue of 1.89 billion yuan, down 5.9% [1]. - The company is focusing on technological and product innovation to meet diverse consumer needs and is implementing a brand overseas strategy to enhance its international market presence [3].