XINGYE TECH.(002674) 开源证券·2024-08-22 15:07Investment Rating - The investment rating for the company is "Buy" (maintained) [2][22]. Core Insights - The company's H1 2024 revenue increased slightly to 1.261 billion yuan, a year-on-year growth of 5.5%, while the net profit attributable to shareholders decreased by 38.4% to 57 million yuan. The automotive interior leather segment performed better than expected, contributing to revenue growth despite asset impairment affecting net profit [10][15][22]. - The company is committed to its strategy as a one-stop supplier of cowhide materials, with expectations for continued growth in export business and new models in the automotive sector supporting revenue increases [22]. Summary by Sections 1. H1 2024 Revenue and Profit Performance - The company reported H1 2024 revenue of 1.261 billion yuan, with a breakdown of quarterly revenues at 597 million yuan for Q1 (up 28.6% YoY) and 665 million yuan for Q2 (down 9.2% YoY). The net profit for Q1 was 35 million yuan (up 22% YoY) and for Q2 was 23 million yuan (down 65.1% YoY) [10][14]. - The automotive interior leather revenue reached 294 million yuan in H1 2024, reflecting a 21.11% increase YoY, while the shoe and bag leather segment saw a slight decline of 0.3% [12][10]. 2. Profitability and Cost Management - The gross margin for H1 2024 was 20.36%, with a slight increase of 0.09 percentage points. The net profit margin was 4.53%, down 3.23 percentage points YoY [15][16]. - The company recorded an asset impairment loss of 57 million yuan, which accounted for 4.5% of revenue, primarily due to weak downstream market demand [16][15]. 3. Future Outlook and Production Capacity - The company plans to expand its production capacity with a new factory in Indonesia expected to commence operations in Q4 2024, aiming to enhance delivery times and responsiveness to international market demands [20][22]. - The profit forecasts for 2024-2026 have been adjusted to 220 million, 280 million, and 330 million yuan respectively, reflecting a downward revision from previous estimates [22][21]. 4. Financial Metrics and Valuation - The current stock price corresponds to a P/E ratio of 10.7 for 2024, 8.7 for 2025, and 7.2 for 2026, indicating potential value for investors [22][7]. - The company aims for a minimum growth of 20% in net profit for 2024, as part of its performance assessment criteria [20][21].