Xingyu Co.,Ltd(601799) 华西证券·2024-11-21 08:50Investment Rating - The report gives a "Buy" rating for Xingyu Auto Lighting (星宇股份) with a target price of 137.70 CNY per share, corresponding to a PE ratio of 25.90/20.48/16.99x for 2024-2026 [7] Core Views - Xingyu's growth potential lies in its technological advantages in automotive lighting, which allow it to benefit from product upgrades and increased value per unit [6] - Vertical integration across the supply chain and efficient management are expected to improve overall profitability [6] - The shift from functional to intelligent lighting components, driven by domestic SOC chip production, will bring new changes to the smart headlight market [6] - Xingyu has established strong partnerships with top-tier OEMs, with its top 5 customers accounting for 65% of its revenue [6] Company Overview - Xingyu has gone through four development stages since its establishment in 1993, transitioning from truck lighting to high-end automotive lighting [11][12][13][14] - The company has a stable and concentrated ownership structure, with the founder and her father holding 54.3% of the shares [18] - Xingyu operates subsidiaries in China, Germany, Japan, and Serbia, with a total production capacity of 80 million lighting units per year [19][29] Financial Performance - In 2023, Xingyu achieved revenue of 10.248 billion CNY, a 24.25% YoY increase, and net profit of 1.102 billion CNY, up 17.07% YoY [36] - The company's gross margin has remained above 21%, and its net margin above 10%, both leading the industry [39][40] - Xingyu's R&D expenses reached 610 million CNY in 2023, accounting for 5.95% of revenue, higher than its competitors [45] Market and Competitive Landscape - The global automotive lighting market is highly concentrated, with the top 5 players accounting for over 90% of the market [100] - In China, Xingyu holds a 14% market share, second only to Huayu Automotive Systems (22%) [100] - The company has been expanding its customer base to include new energy vehicle brands like NIO, Li Auto, and AITO [50] Technology and Product Development - Xingyu has been investing in intelligent lighting technologies such as ADB, DLP, and Micro LED, which are expected to drive future growth [61][66] - The company has also been developing new products like HD projection lights and radar-integrated lighting systems [61] - Xingyu's intelligent headlights can project images on the ground to guide or warn other drivers, with a resolution of 25,600 Micro LED pixels [61] Industry Trends - The automotive lighting market is expected to grow significantly, driven by the adoption of LED, ADB, and DLP technologies [92][96] - The value of automotive lighting per vehicle is expected to increase from 2,500 CNY to over 10,000 CNY in the future [92] - The Chinese automotive lighting market is projected to reach 99 billion CNY by 2025, with LED lighting accounting for 90% of the market [96]