XGIMI(SH:688696) Huachuang Securities·2024-04-30 05:32Investment Rating - The report has downgraded the investment rating to "Recommended" with a target price of 130 CNY [1][10]. Core Views - The company experienced a significant decline in revenue and profit in 2023, with total revenue of 3.56 billion CNY, down 15.8% year-on-year, and a net profit of 121 million CNY, down 76% year-on-year [1][10]. - The domestic market is under pressure due to intensified competition, while overseas markets and new product launches show promising growth [10]. - The company maintains a leading position in the domestic projection market, with a 33% market share in the mid-to-high-end segment [10]. Financial Summary - 2023 Financial Performance: - Total revenue: 3.56 billion CNY, down 15.8% YoY - Net profit: 121 million CNY, down 76% YoY - Q4 2023 revenue: 1.135 billion CNY, down 15.31% YoY - Q4 2023 net profit: 34 million CNY, down 80.02% YoY - Q1 2024 revenue: 825 million CNY, down 6.59% YoY - Q1 2024 net profit: 14 million CNY, down 72.57% YoY [1][10]. - Future Projections: - 2024E total revenue: 3.80 billion CNY, growth of 7.0% - 2024E net profit: 175 million CNY, growth of 45.6% - 2025E total revenue: 4.37 billion CNY, growth of 14.7% - 2025E net profit: 246 million CNY, growth of 40.0% [2][10]. - Valuation Metrics: - 2023 PE ratio: 57 - 2024E PE ratio: 39 - 2025E PE ratio: 28 - 2026E PE ratio: 23 [2][10]. Market Position and Strategy - The company is focusing on expanding its overseas market presence, with products entering major retail channels in Europe, the US, and Japan [10]. - The overseas sales proportion has exceeded 25%, which is expected to drive future growth [10]. - The company aims to stabilize its product structure and improve profitability as it enhances its international brand presence [10].