Xiantong Stock(SH:603239) Guoyuan Securities·2025-04-21 06:43Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 14.77 yuan, indicating a potential upside from the current price of 12.82 yuan over a six-month period [4][7]. Core Insights - The company reported a revenue of 1.225 billion yuan for 2024, a year-on-year increase of 14.90%, and a net profit attributable to shareholders of 172 million yuan, up 13.70% year-on-year. For Q1 2025, revenue reached 343 million yuan, reflecting a 27.28% year-on-year growth, with net profit increasing by 28.38% to 67 million yuan [1][4]. Summary by Sections Company Performance - The company achieved a revenue of 1.225 billion yuan in 2024, representing a 14.90% increase year-on-year. The net profit attributable to shareholders was 172 million yuan, up 13.70% year-on-year. In Q1 2025, the company reported a revenue of 343 million yuan, a 27.28% increase year-on-year, and a net profit of 67 million yuan, reflecting a 28.38% growth [1]. Industry Context - The automotive sealing strip industry in China is experiencing intense competition and a rapid reshuffle, with many companies facing losses. In this environment, the company is leveraging its customer resources and cost advantages to accelerate project acquisition, significantly increasing its project pipeline [2]. Future Growth Strategy - The company aims to maintain high-value growth in its core business while leveraging resources from its state-owned platform to explore new growth avenues. It plans to focus on high-value products such as frameless sealing strips and aluminum alloy bright strips, which are expected to enhance revenue and profit margins [3]. Financial Projections - Revenue projections for the company are set at 1.485 billion yuan for 2025, 1.804 billion yuan for 2026, and 2.134 billion yuan for 2027. Corresponding net profits are expected to be 241 million yuan, 286 million yuan, and 331 million yuan for the same years, respectively. The estimated earnings per share are projected to be 0.89 yuan for 2025, 1.05 yuan for 2026, and 1.22 yuan for 2027 [4][6].