Xingyu Co.,Ltd(SH:601799) 东吴汽车黄细里团队·2025-07-18 14:33Core Viewpoints - The domestic automotive lighting industry currently presents a "dual leading" competitive landscape, with market share expected to continue concentrating towards leading companies. The high entry barriers in the industry include customer resources, technology research and development, cost control, and quality certification, which shape a favorable competitive environment for the industry. Leading companies like Xingyu and Huayu Vision dominate the market, while foreign players such as Hella, Valeo, Marelli, Koito, and Stanley also hold significant market shares. Future technological upgrades in the lighting sector will further concentrate market share among leading enterprises, potentially sidelining smaller lighting companies [2][7][14]. Industry Overview - A ten-year review of the Chinese automotive lighting landscape shows a significant decline in Japanese manufacturers, overall stability in European manufacturers, and the continuous rise of domestic leaders. Japanese companies like Koito and Stanley have faced declining revenues and profits in the Chinese market, particularly Koito, which has seen its operating profit margin turn negative in recent years. In contrast, European manufacturers like Valeo and Hella have maintained stable growth and profitability, with ongoing expansion efforts in China. Domestic leader Xingyu has consistently grown since its IPO, surpassing Huayu Vision in revenue in 2024, while Huayu Vision has experienced a decline due to the downturn of joint venture brands within the SAIC system [3][4][6][7]. Competitive Analysis - Xingyu's competitive advantages are evident in revenue, profitability, expansion, and research and development. In 2024, Xingyu's revenue is expected to surpass Huayu Vision, and its profitability is significantly higher than both domestic and foreign competitors. Xingyu maintains a steady expansion pace and invests heavily in R&D, solidifying its technological strength and leading experience in mass production of high-end lighting projects [4][6][7]. Investment Recommendations - The recommendation is to invest in the domestic automotive lighting leader, Xingyu Co., Ltd. The rationale includes: 1. Market potential: The automotive lighting sector is characterized by continuous iteration and upgrade capabilities, with ongoing smart upgrades driving ASP and industry growth. 2. Competitive landscape: High entry barriers have led to an excellent competitive environment, with Xingyu's industry position continuously improving over the past few years. 3. Customer base: The company has deep partnerships with leading clients in the new energy and automotive sectors, which positions it to benefit from the ongoing concentration of the passenger vehicle industry [5][6][7]. Financial Forecast - The forecast for Xingyu's net profit attributable to shareholders for 2025-2027 is projected to be 1.761 billion, 2.189 billion, and 2.683 billion yuan, respectively, corresponding to P/E ratios of 20x, 16x, and 13x [6][7].