XUSHENG(SH:603305) Guotou Securities·2024-04-30 00:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 17.2 CNY per share, maintaining the rating [6][10]. Core Views - The company's revenue for 2023 was 4.834 billion CNY, a year-on-year increase of 8.54%, while the net profit attributable to shareholders was 714 million CNY, up 1.83% year-on-year [2][3]. - In Q1 2024, the company reported revenue of 1.139 billion CNY, a decrease of 2.91% year-on-year, and a net profit of 157 million CNY, down 18.49% year-on-year [4]. - The company has reduced its reliance on major customers, with the revenue concentration of the top five customers decreasing from 66.2% in 2021 to 56.23% in 2023 [3]. - The gross profit margin for 2023 was 24%, an increase of 0.1 percentage points year-on-year, while the net profit margin was 14.72%, a decrease of 1 percentage point year-on-year [3]. - The company has diversified its product offerings, achieving mass supply of energy storage product casings in 2023 [3][5]. Financial Performance Summary - For 2023, the company achieved a revenue of 48.34 billion CNY and a net profit of 7.14 billion CNY, with a gross profit margin of 24% and a net profit margin of 14.72% [3]. - In Q1 2024, the company’s revenue was 1.139 billion CNY with a gross profit margin of 23.81% [4]. - The company’s projected net profits for 2024, 2025, and 2026 are 810 million CNY, 960 million CNY, and 1.18 billion CNY respectively, with corresponding P/E ratios of 16, 13.5, and 10.9 [10].