XUSHENG(SH:603305) Guohai Securities·2024-04-30 11:32Investment Rating - The investment rating for the company is "Buy" and it is maintained [11][15][20]. Core Views - The company achieved a revenue of 4.834 billion yuan in 2023, representing a year-on-year growth of 8.54%. The net profit attributable to shareholders was 714 million yuan, with a growth of 1.83% year-on-year [1][2]. - In Q1 2024, the company reported a revenue of 1.139 billion yuan, a decline of 2.91% year-on-year, and a net profit of 157 million yuan, down 18.49% year-on-year [1][2]. - The company is expected to continue its growth trajectory, with projected revenues of 5.691 billion yuan, 7.122 billion yuan, and 9.052 billion yuan for 2024, 2025, and 2026 respectively, reflecting growth rates of 18%, 25%, and 27% [15][16]. Financial Performance - The gross profit margin for 2023 was 24.0%, showing a slight improvement from 2022, while the Q1 2024 gross profit margin was 23.81%, remaining stable compared to the previous year [2][11]. - The company has a strong customer base, having expanded its reach to major markets in North America, Europe, and Asia, including partnerships with both emerging and established automotive manufacturers [11][15]. Capacity Expansion and Projects - The company plans to raise up to 2.8 billion yuan to fund projects including the "New Energy Vehicle Powertrain Project" and "Lightweight Automotive Key Components Project," which are expected to enhance its core competitiveness and support high-quality development [4][15]. - A new manufacturing base in Mexico is under construction, expected to generate an annual output value of 600 million USD, aimed at improving service efficiency for North American clients [11][15].