XINGYE TECH.(SZ:002674) Tianfeng Securities·2025-05-01 14:23Investment Rating - The investment rating for the company is "Accumulate" with a downward adjustment [5][4]. 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 financial performance for Q1 2025 shows a revenue of 600 million, a year-on-year increase of 5%, but a significant decline in net profit attributable to shareholders, down 45% year-on-year [1][4]. - The company plans to distribute a cash dividend of 1.5 yuan per 10 shares, with an expected payout of 40 million, resulting in a payout ratio of 31% [1]. Financial Performance Summary - For the full year 2024, the company reported a revenue of 3 billion, a year-on-year increase of 9%, and a net profit attributable to shareholders of 140 million, down 24% year-on-year [1][4]. - The revenue breakdown for 2024 shows that leather for shoes and bags generated 2 billion, accounting for 68% of total revenue, while automotive interior leather contributed 700 million, representing 24% of total revenue [2]. - The gross margin for automotive interior leather improved by 4 percentage points year-on-year to 34% [2]. Profit Forecast Adjustments - The profit forecast for 2025-2027 has been adjusted, with expected net profits of 150 million, 180 million, and 230 million respectively [4]. - The earnings per share (EPS) estimates have been revised to 0.5, 0.6, and 0.8 yuan for 2025-2027 [4]. Market Position and Growth Potential - The company has successfully entered the supply chains of international sports brands such as Adidas and COLEHAAN, indicating strong market positioning [2]. - The overseas revenue increased by 97% year-on-year, highlighting the potential for growth in international markets due to the investment in production capacity in Southeast Asia [2].