XGIMI(SH:688696) Guotai Junan Securities·2024-04-30 01:32Investment Rating - The report maintains a "Cautious Accumulate" rating for the company, with a target price of 98.50 yuan, down from the previous "Accumulate" rating due to reduced target space [3][48]. Core Views - The company's performance in 2023 is under pressure, with domestic sales relatively weak while overseas sales continue to grow. Future profitability is expected to improve marginally as the company expands its overseas presence and enters the automotive display sector [3][30]. Summary by Sections 1. Performance Overview - In 2023, the company achieved operating revenue of 35.57 billion yuan, a year-on-year decrease of 15.77%, and a net profit attributable to shareholders of 1.21 billion yuan, down 75.97% year-on-year. The fourth quarter saw revenue of 11.35 billion yuan, down 15.31% year-on-year, and a net profit of 0.34 billion yuan, down 80.02% year-on-year [23][30]. 2. Revenue Analysis - Domestic sales faced challenges, with domestic revenue of 26.17 billion yuan, down 23.07% year-on-year, while overseas revenue reached 9.13 billion yuan, up 15.60% year-on-year. The company plans to enhance its growth trajectory by collaborating with domestic and international automotive manufacturers to develop automotive projection products [25][24]. 3. Profitability Insights - The company's gross margin for 2023 was 31.25%, a decrease of 4.73 percentage points year-on-year, while the net margin was 3.37%, down 8.5 percentage points year-on-year. The decline in margins is attributed to lower-priced products affecting overall profitability, but improvements are anticipated with the launch of new products [26][30]. 4. Cash Flow and Assets - The company reported a net cash flow from operating activities of 3.78 billion yuan in 2023, an increase of 4.37 billion yuan year-on-year. The cash and cash equivalents at the end of 2023 amounted to 26.16 billion yuan, up 18.19% year-on-year, while inventory decreased by 7.29% to 10.98 billion yuan [37][45]. 5. Financial Forecast - The company forecasts earnings per share (EPS) of 3.28, 4.59, and 5.93 yuan for 2024, 2025, and 2026, respectively, with growth rates of +91%, +40%, and +29% [48].