XUSHENG(SH:603305) Changjiang Securities·2024-05-14 05:02Investment Rating - The report maintains a "Buy" rating for the company [23][9]. Core Views - The company is undergoing a transformation period in 2023, with significant overseas profit improvements and stable overall performance. In Q1 2024, the company faced sales pressure, but its operational performance remained relatively stable [6][10]. - The company has proactively entered the new energy vehicle parts sector, expanding its capabilities in die-casting, forging, and extrusion processes, which positions it well for the anticipated surge in demand for lightweight components in North America. The establishment of a factory in Mexico is expected to further enhance its global market share [6][9]. - The company aims to become a global aluminum platform enterprise, focusing on lightweight solutions and expanding its product matrix to maintain competitive advantages [9][10]. Financial Performance Summary - In 2023, the company achieved revenue of 4.83 billion yuan, a year-on-year increase of 8.5%, and a net profit attributable to shareholders of 710 million yuan, up 1.8% year-on-year. However, in Q1 2024, revenue decreased by 2.9% year-on-year to 1.14 billion yuan, with net profit down 18.5% to 160 million yuan [6][10]. - The overall gross margin for 2023 was 24.0%, with domestic gross margin at 17.8% (down 1.0 percentage points) and overseas gross margin at 32.4% (up 3.1 percentage points) [8][10]. - The company expects net profits for 2024, 2025, and 2026 to be 810 million, 1.09 billion, and 1.39 billion yuan, respectively, with corresponding price-to-earnings ratios of 15.9X, 11.8X, and 9.2X [9][10].