Xingyu Co.,Ltd(SH:601799) Changjiang Securities·2024-05-16 03:02Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - The company reported Q1 2024 revenue of 2.41 billion yuan, a year-on-year increase of 25.5% but a quarter-on-quarter decrease of 19.9%. The net profit attributable to the parent company was 240 million yuan, up 19.2% year-on-year but down 24.3% quarter-on-quarter. Revenue was impacted by the invoicing schedule for new project confirmations, fluctuations in mold fee collections, and pressure from downstream joint venture clients [6][7]. - The gross margin for Q1 2024 was 19.6%, down 1.9 percentage points year-on-year and 0.8 percentage points quarter-on-quarter. This decline was primarily due to lower mold fee collections and fluctuations in the product mix, particularly in high-margin projects [6][7]. - The company is optimistic about the performance of high-value new projects starting from Q2 2024, as these projects are expected to ramp up and contribute positively to revenue [6][7]. Summary by Sections Financial Performance - Q1 2024 revenue was 2.41 billion yuan, with a year-on-year growth of 25.5% and a quarter-on-quarter decline of 19.9%. The net profit was 240 million yuan, reflecting a year-on-year increase of 19.2% but a quarter-on-quarter decrease of 24.3% [6][7]. - The gross margin for Q1 2024 was 19.6%, which is a decrease of 1.9 percentage points year-on-year and 0.8 percentage points quarter-on-quarter, influenced by mold fee collection issues and product mix changes [6][7]. Market Outlook - The company is expected to benefit from a rich pipeline of new projects with high-value contributions, particularly in the domestic market, as it collaborates with new energy vehicle manufacturers and domestic brands [6][7]. - The establishment of subsidiaries in North America and the ramp-up of production capacity in Serbia are part of the company's strategy to expand its global supply chain [6][7]. Future Projections - The company forecasts net profits of 1.51 billion yuan, 1.99 billion yuan, and 2.51 billion yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 27X, 20X, and 16X [7].