XUSHENG(SH:603305) Huachuang Securities·2025-04-29 05:55Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 16.4 yuan [1]. Core Views - The company's performance is under pressure in the short term, but there are signs of improvement in operational performance. New business areas such as magnesium alloy, energy storage, and robotics are being developed simultaneously [7][8]. - The company reported a revenue of 4.41 billion yuan for 2024, a year-on-year decrease of 9%, and a net profit of 416 million yuan, down 42% year-on-year. For Q1 2025, revenue was 1.05 billion yuan, down 8% year-on-year, with a net profit of 96 million yuan, down 39% year-on-year [1][3]. Financial Summary - 2024 Financial Performance: - Total revenue: 4,409 million yuan, YoY growth: -8.8% - Net profit: 417 million yuan, YoY growth: -41.7% - Earnings per share: 0.44 yuan [3][4]. - 2025-2027 Financial Projections: - Expected revenue growth: 5,029 million yuan in 2025, 6,091 million yuan in 2026, and 6,970 million yuan in 2027, with respective YoY growth rates of 14.1%, 21.1%, and 14.4% [3][8]. - Projected net profit: 521 million yuan in 2025, 634 million yuan in 2026, and 770 million yuan in 2027, with respective YoY growth rates of 25.2%, 21.6%, and 21.5% [3][8]. - Valuation Metrics: - Price-to-earnings (P/E) ratio is projected to be 28 in 2024, decreasing to 15 by 2027 [3][4]. - Price-to-book (P/B) ratio is expected to remain around 1.8 to 1.5 from 2024 to 2027 [3][4]. Business Development - The company is actively developing new business lines: - Magnesium Alloy: Successful development of semi-solid injection molded motor housings, with collaborations with foreign clients [7]. - Energy Storage: Revenue from energy storage components reached 234 million yuan in 2024, more than doubling year-on-year [7]. - Robotics: Investment in humanoid robots, with key product developments and project engagements with multiple clients [7].