Xinquan Automotive Trim(603179) 广发证券·2024-06-04 06:31Investment Rating - The investment rating for the company is "Buy" with a target price of 57.60 CNY per share, compared to the current price of 43.10 CNY [1]. Core Insights - The company is a leading independent third-party manufacturer of automotive interior and exterior trim parts, with over 20 years of experience in the industry. Its product range includes dashboards, door panels, and bumpers, serving clients such as Geely, BYD, and international electric vehicle brands. The dashboard assembly is the company's flagship product, showing a consistent increase in market share within China [2][10]. - The company's growth has been driven by strategic foresight and advantages in technology, capacity, and management. The three growth phases from 2012 to 2023 have seen compound annual growth rates (CAGR) in net profit of 24.7%, 118.1%, and 68.4%, respectively, fueled by product expansion, customer growth, and a combination of domestic and international client increases [2][19]. - The automotive interior and exterior trim market is projected to exceed 1 trillion CNY, with opportunities arising from domestic substitution trends as consumer preferences shift towards upgraded materials and integrated designs. The company is expected to benefit from the rise of domestic brands and the ongoing globalization of its client base [2][10]. Summary by Sections Company Overview - The company has established a solid organizational structure and governance, with a stable shareholding and a well-defined incentive mechanism. The controlling shareholders hold 37.2% of the shares, ensuring stability [15][16]. Business Breakdown - The company has diversified its product offerings, with dashboard assemblies being the core product. In 2023, dashboard and door panel revenues accounted for 82.5% of total revenue, highlighting the importance of these products to the company's financial performance [12][13]. Industry Outlook - The market for automotive interior and exterior trim parts is expected to reach 1,667 billion CNY in China by 2025, driven by consumption upgrades and the rise of domestic brands. The company is well-positioned to capitalize on these trends [2][10]. Growth Logic - The company's growth is supported by a dual engine of customer and product expansion, with a focus on high-quality clients and a steady increase in production capacity. The international expansion aligns with the globalization of its customer base, providing further growth opportunities [2][19].