Xingyu Co.,Ltd(SH:601799) Minsheng Securities·2025-08-31 04:11Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 121.08 yuan on August 29, 2025, corresponding to a PE ratio of 20/17/14 for the years 2025-2027 [6][4]. Core Insights - The company reported a stable revenue growth with a 2025H1 revenue of 6.757 billion yuan, up 18.20% year-on-year, and a net profit of 706 million yuan, up 18.88% year-on-year [1][2]. - The company is a core supplier for Huawei, contributing to its performance resilience, particularly with the launch of the AITO M9 and M8 models, which have seen significant pre-order success [3][4]. - The launch of the Intelligent Automotive Electronics and Visual Systems Industrial Center project is expected to enhance the company's production capacity and support long-term growth [4]. Revenue and Profitability - In Q2 2025, the company achieved a revenue of 3.663 billion yuan, reflecting a year-on-year increase of 10.85% and a quarter-on-quarter increase of 18.36% [2]. - The gross profit margin for Q2 2025 was 19.64%, showing a slight decrease of 0.73 percentage points year-on-year but an increase of 0.81 percentage points quarter-on-quarter [2]. - The net profit margin for Q2 2025 was 10.49%, with a year-on-year decrease of 0.14 percentage points and a quarter-on-quarter increase of 0.08 percentage points [2]. Financial Forecasts - The company is projected to achieve revenues of 16.013 billion yuan, 19.108 billion yuan, and 22.632 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 1.733 billion yuan, 2.017 billion yuan, and 2.543 billion yuan [5][9]. - The expected EPS for 2025, 2026, and 2027 are 6.07 yuan, 7.06 yuan, and 8.90 yuan, respectively [5][9]. Strategic Developments - The company is focusing on the automotive lighting sector, benefiting from the electrification trend, which is expected to drive both volume and price increases for its products [4]. - The establishment of the new industrial center is anticipated to resolve future capacity shortages and enhance the company's digital and intelligent manufacturing capabilities [4].