XINGYE TECH.(SZ:002674) Great Wall Securities·2024-05-09 00:02Investment Rating - The report maintains a "Buy" rating for the company [1][10][33] Core Views - The company has shown significant revenue growth, with a 35.81% year-on-year increase in 2023, reaching 2.7 billion yuan, and a net profit growth of 23.74% to 186 million yuan [4][10] - The automotive interior business is rapidly growing, with a notable increase in gross margin, and the company has secured new clients, including a project worth 1 billion yuan expected to start in 2025 [19][23] - The company is strategically expanding in East and South China, leveraging its geographical advantages to enhance customer relationships and market responsiveness [9][10] Financial Performance - Revenue and profit forecasts for 2024-2026 indicate continued growth, with expected EPS of 0.91 yuan, 1.16 yuan, and 1.43 yuan respectively, corresponding to P/E ratios of 13.3X, 10.5X, and 8.5X [10][27] - The gross margin for 2023 was 21.41%, an increase of 1.90 percentage points year-on-year, with a net profit margin of 8.57% [5][10] - The company has a strong cash flow position, with operating cash flow expected to improve significantly in the coming years [26] Business Segments - The company operates in various leather segments, with revenues from shoe and bag leather, automotive interior leather, and collagen products showing substantial year-on-year growth [19][22] - The automotive interior leather segment has seen a 94.21% increase in revenue, reflecting the growing demand in the electric vehicle market [19][22] - The company is actively developing customized products to meet client needs, enhancing customer loyalty and market presence [19][22]