XUSHENG(603305) Changjiang Securities·2024-11-12 01:17Investment Rating - The report maintains a "Buy" rating for Xusheng Group (603305 SH) [7] Core Views - Xusheng Group achieved Q3 revenue of 1 13 billion yuan, a year-on-year decrease of 7 4% but a quarter-on-quarter increase of 11 4% [4] - Q3 net profit attributable to the parent company was 60 million yuan, a year-on-year decrease of 66 0% and a quarter-on-quarter decrease of 45 9% [4] - The company's Q3 gross margin was 18 2%, a year-on-year decrease of 7 1 percentage points and a quarter-on-quarter decrease of 3 4 percentage points, likely due to market competition and customer price reductions [5] - The company is expected to achieve net profits of 420 million, 640 million, and 850 million yuan in 2024, 2025, and 2026, respectively, with corresponding P E ratios of 29 0X, 19 1X, and 14 5X [6] Financial Performance - Q3 revenue growth was driven by increased production and sales from major customers and the industry, with Tesla's global sales reaching 463,000 units, a year-on-year increase of 6 4% [4] - Q3 operating expenses were 10 3%, a year-on-year increase of 0 8 percentage points but a quarter-on-quarter decrease of 0 9 percentage points [5] - The company's net profit margin in Q3 was 5 2%, a year-on-year decrease of 8 9 percentage points and a quarter-on-quarter decrease of 5 5 percentage points [5] Strategic Development - Xusheng Group is transforming into a global lightweight platform enterprise, with aluminum extrusion products expected to drive a second growth curve [6] - The company has started construction of a production base in Mexico in 2023, which will enhance its global supply chain flexibility and support services in North America [6] - The company has diversified its customer base and expanded into the energy storage sector, further solidifying its position as a platform enterprise [6] Industry Outlook - The decline in raw material prices such as aluminum, coupled with the scaling of new orders, is expected to improve the company's revenue and profitability in the future [5] - The rapid growth of the North American new energy market is creating significant demand for lightweight components, benefiting Xusheng Group's global expansion [6]