Xingyu Co.,Ltd(601799) 华创证券·2024-04-07 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][12]. Core Insights - The company achieved a revenue of 10.248 billion yuan in 2023, a year-on-year increase of 24%, and a net profit attributable to shareholders of 1.102 billion yuan, up 17% year-on-year, with a net profit margin of 10.8% [1]. - The product and customer structure optimization is progressing as expected, with revenue growth consistently outperforming the industry. The company’s revenue growth rate is projected to maintain over 20% in 2024 due to increasing market share in new energy clients and continuous product structure optimization [1][2]. - The company is positioned as a leading player in the automotive lighting industry, benefiting from high barriers to entry and strong product upgrade trends. Its collaboration with Huawei is expected to enhance its growth potential in the global market [1][2]. Financial Performance Summary - In Q4 2023, the company reported a revenue of 3 billion yuan, a year-on-year increase of 32%, and a quarter-on-quarter increase of 7.1%. The full-year revenue for 2023 was 10.248 billion yuan, with a net profit of 1.102 billion yuan [1]. - The gross margin for the main business improved to 22% in H2 2023, with a net profit margin of 10.6% in Q4 2023, reflecting effective cost control measures [1][2]. - The company’s revenue is projected to reach 13.266 billion yuan in 2024, with a year-on-year growth of 29.4%, and net profit is expected to be 1.519 billion yuan, up 37.8% [2][7]. Market Position and Growth Potential - 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 grow to 33.8 billion yuan [1]. - The company has established a strong foothold in the new energy vehicle sector, with its revenue contribution from this segment increasing from less than 5% in 2022 to over 15% in 2023 [1][2]. - The company’s strategic partnerships and global expansion efforts, including entry into the North American market, position it well for future growth [1].