Xingyu Co.,Ltd(SH:601799) Huachuang Securities·2025-08-28 10:45Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][8]. Core Views - The company reported a net profit of 384 million yuan for Q2 2025, representing a year-on-year increase of 9% and a quarter-on-quarter increase of 19%. The non-recurring net profit was 375 million yuan, up 15% year-on-year and 20% quarter-on-quarter [2][3]. - The company is focusing on advanced technologies, particularly in the smart automotive lighting sector, which is expected to drive significant growth [2][3]. - The company has made substantial investments in R&D, with a notable increase in R&D expenses due to rising employee compensation and material costs [8]. Financial Summary - Total revenue is projected to grow from 13,253 million yuan in 2024 to 22,188 million yuan in 2027, with year-on-year growth rates of 29.3%, 20.8%, 18.1%, and 17.3% respectively [4][9]. - The net profit attributable to the parent company is expected to rise from 1,408 million yuan in 2024 to 2,598 million yuan in 2027, with growth rates of 27.8%, 20.8%, 22.1%, and 25.1% respectively [4][9]. - The earnings per share (EPS) is forecasted to increase from 4.93 yuan in 2024 to 9.10 yuan in 2027 [4][9]. Market Position and Growth Potential - The company is becoming a leading player in the high-end smart automotive lighting market, with significant product upgrades and collaborations with major tech firms [8]. - The global automotive lighting market is expected to expand to 47.6 billion USD by 2028, and if the company captures a 10% market share, its revenue could reach 33.8 billion yuan [8]. - The company is also expanding its global footprint, with notable revenue growth in the European market and plans to enter the North American market [8].