Xinquan Automotive Trim(SH:603179) Huaxin Securities·2024-05-05 06:30Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first investment recommendation [2]. Core Insights - The company has been deeply engaged in the automotive interior and exterior parts industry for over 20 years, establishing itself as a leading supplier in China [2]. - The company has experienced significant revenue growth, with revenues of 46.1 billion, 69.5 billion, and 105.7 billion yuan from 2021 to 2023, representing year-over-year growth rates of 25.3%, 50.6%, and 52.2% respectively [2]. - The company is benefiting from the "new four modernizations" in the automotive industry, which include electrification, intelligence, connectivity, and sharing, leading to a high growth phase [2]. Summary by Sections Company Overview - Founded in 2001, the company has developed a comprehensive product line for automotive interior and exterior components, including dashboard assemblies, roof consoles, door inner panels, pillar trims, water channel covers, and bumper assemblies [2]. - The company has expanded its overseas market presence, particularly benefiting from international electric vehicle clients, with overseas revenue growing significantly from 2.3 million to 6.1 million and then to 5.0 million yuan from 2021 to 2023, with a CAGR of 48.7% [2]. Product Performance - The dashboard assembly is a core business for the company, with revenue increasing from 28.5 billion to 45.6 billion and then to 69.8 billion yuan from 2021 to 2023, accounting for 61.9%, 65.6%, and 66.1% of total revenue respectively [2]. - The average selling price (ASP) of dashboard assemblies has risen from 1149.1 yuan to 1311.4 yuan during the same period, reflecting the company's competitive strength in the market [2]. Technological Edge - The company possesses industry-leading technology and advanced production processes, holding 195 patents, including 9 invention patents and 184 utility model patents [3]. - The company has implemented advanced manufacturing techniques, such as reaction injection molding technology for lightweight products and various innovative production processes that enhance product quality and efficiency [3]. Client Base and Capacity Expansion - The company has established strong relationships with major automotive manufacturers, including FAW Group and various international electric vehicle companies, contributing significantly to its revenue growth [7]. - The company is expanding its production capacity, with a total capacity of 560 million sets for large and medium-sized products, and plans to increase capacity in Mexico by the end of 2024 [7]. Financial Projections - Revenue is projected to reach 137.7 billion, 175.3 billion, and 217.3 billion yuan for 2024, 2025, and 2026 respectively, with year-over-year growth rates of 30.2%, 27.3%, and 24.0% [8]. - The net profit attributable to shareholders is expected to be 11.1 billion, 14.9 billion, and 18.3 billion yuan for the same years, with growth rates of 38.2%, 33.5%, and 23.0% respectively [8].