XINGYE TECH.(SZ:002674) East Money Securities·2024-04-25 08:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [15]. Core Insights - In 2023, the company achieved operating revenue of 2.70 billion yuan, a year-on-year increase of 35.81%, and a net profit attributable to shareholders of 186 million yuan, up 23.74% [2][17]. - The company is actively expanding its overseas market presence and diversifying its business structure, which has led to a 19.59% increase in revenue from leather used in shoes and bags, totaling 1.87 billion yuan [1][17]. - The automotive interior leather segment has seen rapid growth, with revenue reaching 599 million yuan, a 94.21% increase, driven by the rising sales of new energy vehicles [4][17]. - The company is also exploring new product categories, such as leather for electronic coverings and furniture, contributing to overall revenue growth [1][17]. Summary by Sections Financial Performance - In 2023, the company reported a gross margin of 21.41%, an improvement from the previous year [15]. - The first quarter of 2024 saw revenue of 597 million yuan, a 28.61% year-on-year increase, with a net profit of 35 million yuan, up 22.03% [15]. - The company forecasts operating revenues of 3.25 billion yuan, 3.83 billion yuan, and 4.36 billion yuan for 2024, 2025, and 2026, respectively [17]. Business Development - The company is focusing on enhancing its customer base and optimizing its business structure, which is expected to stabilize its market position [4][17]. - The expansion of the Indonesian factory is anticipated to further boost production capacity and contribute to revenue growth [1][17]. Market Position - The company is positioned to benefit from the growing demand in the automotive and footwear sectors, with a strong emphasis on international market expansion [1][4][17].