XINGYE TECH.(SZ:002674) Tianfeng Securities·2025-05-01 10:19Investment Rating - The investment rating for the company is "Accumulate" with a downward adjustment [5] Core Views - The company continues to advance its automotive interior leather business, with a focus on expanding production capacity in Indonesia and Vietnam [2][4] - The company reported a revenue of 600 million in Q1 2025, a year-on-year increase of 5%, while the net profit attributable to shareholders decreased by 45% to 20 million [1] - The company plans to distribute a cash dividend of 1.5 yuan per 10 shares, with an expected payout of 40 million and a payout ratio of 31% [1] Financial Performance Summary - For the full year 2024, the company achieved a revenue of 3 billion, a year-on-year increase of 9%, with a net profit of 140 million, down 24% [1] - The revenue from leather for shoes and bags was 2 billion, up 8%, accounting for 68% of total revenue, while automotive interior leather revenue was 700 million, up 20%, accounting for 24% [2] - The gross margin for automotive interior leather improved by 4 percentage points to 34% [2] Subsidiary Performance - The subsidiary Hongxing Automotive Leather reported a net profit of 150 million, up 51%, attributed to increased sales and improved gross margin [3] - The subsidiary Lianhua Leather reported a net loss of 10 million, down 62%, due to increased financial expenses and exchange losses [3] Earnings Forecast - The earnings forecast for 2025-2027 has been adjusted, with expected net profits of 150 million, 180 million, and 230 million respectively [4] - The EPS for 2025-2027 is projected to be 0.5, 0.6, and 0.8 yuan respectively [4]