XINGYE TECH.(SZ:002674) Tianfeng Securities·2024-03-03 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating an expected return of over 20% within the next six months [6][19]. Core Views - The company is expected to benefit from the increasing delivery volumes of its core client, Li Auto, particularly with the launch of new models L7, L8, and L9 in March 2024, and the introduction of the more affordable L6 in April 2024, which is anticipated to lower the purchase threshold and drive higher delivery volumes [1][4]. - The company has established strong relationships with leading electric vehicle brands and is actively expanding its client base to include other major manufacturers such as BYD and GAC [1][2]. - The recovery in demand for leather used in shoes and bags, along with the successful expansion into the second-layer leather and collagen raw materials through its subsidiary, is expected to positively impact profitability [3][4]. Financial Summary - Revenue projections for 2023, 2024, and 2025 are estimated at 26.60 billion, 33.91 billion, and 42.90 billion respectively, with corresponding net profits of 2.01 billion, 2.67 billion, and 3.40 billion [4][5]. - The company’s earnings per share (EPS) are forecasted to be 0.69, 0.92, and 1.16 yuan for the years 2023, 2024, and 2025, respectively [4][5]. - The company’s financial ratios indicate a steady growth trajectory, with a projected revenue growth rate of 33.80% in 2023, followed by 27.50% and 26.50% in the subsequent years [5][12].