Xingyu Co.,Ltd(SH:601799) Guotai Junan Securities·2024-04-09 16:00Investment Rating - The report maintains a "Buy" rating for the company with an updated target price of 173.86 CNY, up from the previous target of 154.25 CNY [4][6]. Core Insights - The company's performance in 2023 met expectations, with revenue and profit both showing growth. The company benefited from the continuous upgrade of intelligent vehicle lighting and is awaiting the ramp-up of new energy vehicle clients [2][3]. - The 2023 revenue reached 10.248 billion CNY, a year-on-year increase of 24.3%, while the net profit attributable to shareholders was 1.102 billion CNY, up 17.1% year-on-year [3][4]. - The report highlights a shift in the customer structure from joint venture automakers to new energy vehicle manufacturers, with the revenue share from the top five customers decreasing to 63.46% in 2023 from 72.24% in 2022 [3][4]. Financial Summary - The company achieved a gross margin of 21.2% in 2023, a decrease of 1.4 percentage points year-on-year, while the net margin was 10.8%, down 0.7 percentage points year-on-year [3][4]. - The earnings per share (EPS) for 2023 was 3.86 CNY, with forecasts for 2024 and 2025 adjusted to 5.36 CNY and 6.95 CNY respectively, and a new forecast for 2026 at 8.42 CNY [3][4]. - The report projects a revenue increase to 12.877 billion CNY in 2024, representing a growth rate of 26% [3][4]. Valuation Metrics - The report assigns a price-to-earnings (PE) ratio of 25 times for 2025, which corresponds to the target price of 173.86 CNY [2][4]. - The company's net asset return rate is projected to increase from 12.1% in 2023 to 17.9% by 2026 [3][4]. - The report notes a decrease in the company's debt ratio, with a net debt ratio of -35.56% [5][6].