XINGYE TECH.(SZ:002674) KAIYUAN SECURITIES·2024-04-25 14:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][51]. Core Views - The company is committed to a one-stop supply strategy for cowhide leather materials, maintaining a high dividend payout ratio [28]. - The automotive interior leather segment showed impressive profitability in 2023, with the impact of stock incentive costs on expense ratios [5][39]. - The company completed its second stock incentive plan in 2023, and the establishment of the Indonesian factory is expected to expand export capacity [39][18]. - The financial forecast and investment recommendations indicate a positive outlook for the company's growth [20]. Financial Performance Summary - In 2023, the company's revenue reached 2.7 billion yuan, representing a year-on-year increase of 35.8% [62]. - The net profit attributable to the parent company for 2023 was approximately 186 million yuan, up 23.74% year-on-year [64]. - The automotive interior leather revenue was 599 million yuan in 2023, a significant increase of 94.21%, accounting for 22.2% of total revenue [66]. - The gross margin for the company in 2023 was 21.41%, an increase of 1.9 percentage points compared to the previous year [9][62]. - The net profit margin for 2023 was 6.9%, a decrease of 0.67 percentage points year-on-year [12][62]. Production and Capacity - The total production capacity in 2023 was 18.72 million square feet, an increase of 14% from the previous year, with a capacity utilization rate of 68.23% [18][19]. - The company aims for a production capacity utilization rate of over 60% in its main business, with the automotive leather segment expected to reach 80-90% utilization [18]. Stock Incentive Plan - The stock incentive plan for 2023 involved granting a total of 16.7 million stock options, accounting for 5.72% of the company's total share capital [17]. - The performance targets for the stock options are based on net profit growth over the next three years, with specific thresholds for different levels of option exercise [40].