Xingyu Co.,Ltd(601799) Guohai Securities·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its future performance [5]. Core Viewpoints - The company has demonstrated steady year-on-year growth in performance, with total revenue reaching 10.248 billion yuan in 2023, a 24.25% increase compared to the previous year. The net profit attributable to shareholders was 1.102 billion yuan, reflecting a 17.07% growth [1][2]. - The company is actively optimizing its customer and product structure while simultaneously advancing new technology research and expanding into new markets [2][3]. - The company is positioned as a leader in the domestic automotive lighting industry, with expectations for revenue growth driven by the increasing value per vehicle and successful expansion into new energy vehicle clients [3][4]. Summary by Relevant Sections Financial Performance - In 2023, the company achieved total revenue of 10.248 billion yuan, with a year-on-year growth of 24.25%. The net profit attributable to shareholders was 1.102 billion yuan, up 17.07% year-on-year. The net profit excluding non-recurring items was 1.045 billion yuan, marking a 28.14% increase [1][2]. - The gross margin for 2023 was 21.18%, a decrease of 1.38 percentage points year-on-year, while the net profit margin was 10.75%, down 0.66 percentage points year-on-year [2][3]. Customer and Product Structure - The company has expanded its product types and improved both quantity and quality. It has developed advanced lighting systems that are now being used in flagship models such as the AITO Wenjie M9 [2][3]. - The client base is diversifying, with traditional clients showing stable growth and new energy vehicle clients experiencing significant increases in production. For instance, production from new energy clients like Li Auto and XPeng saw quarter-on-quarter growth of 32.07% and 43.16%, respectively [3][4]. Global Expansion - The company is expanding its global footprint by establishing subsidiaries in Serbia, Mexico, and the United States, which will support its international market development [3][4]. - The Serbian subsidiary is expected to benefit from favorable tax conditions, providing a solid foundation for future growth [3][4]. Earnings Forecast - The company is projected to achieve revenues of 12.516 billion yuan, 15.500 billion yuan, and 19.065 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 22%, 24%, and 23% [4][5]. - The net profit attributable to shareholders is expected to reach 1.415 billion yuan, 1.788 billion yuan, and 2.199 billion yuan for the same years, with growth rates of 28%, 26%, and 23% [4][5].