XINGYE TECH.(002674) 长城证券·2024-08-22 08:43Investment Rating - The investment rating for the company is "Buy" with a maintained rating [1][3]. Core Views - The automotive interior leather business is experiencing rapid growth, and profitability is further improving [1][2]. - The company is actively expanding its overseas production capacity, promoting global capacity [2][3]. - The company has a strong bargaining power due to its large scale and is effectively adjusting its customer and product structure to enhance competitiveness [2][3]. Financial Summary - Revenue for 2022 was 1,988 million, projected to reach 2,959 million by 2024, with a year-on-year growth rate of 9.6% [1]. - Net profit for 2022 was 151 million, expected to grow to 221 million by 2024, reflecting a year-on-year growth rate of 18.6% [1]. - The company's ROE is projected to increase from 8.9% in 2023 to 12.2% by 2026 [1]. - The latest diluted EPS is expected to rise from 0.64 in 2023 to 1.16 by 2026 [1]. Business Performance - In the first half of 2024, the company achieved a revenue of 1.261 billion, a year-on-year increase of 5.45%, while net profit decreased by 38.44% to 57 million [1][2]. - The gross margin for the first half of 2024 was 20.36%, with a slight increase of 0.10 percentage points year-on-year [2]. - The automotive interior leather segment generated revenue of 294 million, showing a year-on-year growth of 21.11% [2]. Market Position - The company is a supplier for several domestic new energy vehicle brands, benefiting from the rapid growth of the domestic new energy vehicle market [2][3]. - The company is positioned to capture growth opportunities in the automotive interior market, particularly with the rise of domestic new energy brands [2][3].