Xiantong Stock(SH:603239) Guoyuan Securities·2024-04-18 08:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 18.71 yuan, indicating an expected upside from the current price of 15.85 yuan over the next six months [7][3]. Core Insights - The company reported a revenue of 1.066 billion yuan for 2023, a year-on-year increase of 13.81%, and a net profit attributable to shareholders of 151 million yuan, up 19.68% year-on-year. The first quarter of 2024 saw a revenue of 270 million yuan, reflecting a 20.44% increase year-on-year [2]. - The company has successfully developed high-end product lines in the new energy sector, securing contracts with major automotive manufacturers for various projects, which is expected to drive revenue growth and improve profitability [2]. - The company's gross profit margin for Q1 2024 reached 33.49%, an increase of 3.56 percentage points year-on-year, while the net profit margin was 19.27%, up 5.70 percentage points year-on-year, showcasing strong cost control and operational efficiency [2]. Financial Performance Summary - Revenue projections for 2024-2026 are estimated at 1.356 billion yuan, 1.720 billion yuan, and 2.127 billion yuan, respectively, with net profits expected to be 220 million yuan, 298 million yuan, and 390 million yuan for the same period [6]. - The company’s earnings per share (EPS) are projected to be 0.81 yuan, 1.10 yuan, and 1.44 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 19.49, 14.41, and 11.01 [6][2].