Q2 Revenue Hits Record High! Institutions Bullish, Which Lighting Company?

Recently, Xingyu Shares released its 2024 semi-annual report. In the first half of this year, the company achieved revenue of RMB 5.717 billion, a Year-on-year (YoY) increase of 29.20%; net profit attributable to shareholders of the listed company was RMB 594 million, a Year-on-year (YoY) increase of 27.34%; basic earnings per share were RMB 2.0941. In addition, gross margin improved quarter-on-quarter.

Specifically, in Q2 2024, the company achieved operating revenue of RMB 3.304 billion, a Year-on-year (YoY) increase of 32.07% and a quarter-on-quarter increase of 36.98%; net profit attributable to parent company shareholders was RMB 351 million, a Year-on-year (YoY) increase of 33.61% and a quarter-on-quarter increase of 44.77%.

Xingyu Shares stated that the performance drivers mainly come from two aspects:

First, external driving factors: the production and sales volume of vehicle models related to OEMs. The automotive luminaires produced by the company are mainly supporting new models. The development of the new car market, especially the Chinese new car market, has a significant impact on the company. The growth in production and sales volume of customer-related vehicle models is the main factor driving the company's performance development.

Second, internal driving factors: improvements in the company's technical capabilities, management capabilities, and production capacity. To meet customers' increasing requirements for technology, quality, and cost of luminaire products, the company needs to continuously improve its technical and management capabilities; to cope with the growth in the number of luminaire projects and product orders, the company needs to expand its production capacity in a timely manner, thereby building strong market competitiveness and acquiring more high-quality customer projects and orders.

During the reporting period, the company undertook new product R&D projects for 38 vehicle models from multiple customers , and achieved mass production for projects of 22 vehicle models; some projects attracted high attention in the market, fully demonstrating the company's comprehensive strength as a leading luminaire solution provider. The R&D and mass production of high-quality new projects provide a strong guarantee for the company's future development.

At the same time, Xingyu Shares continues to promote the digital transformation of "integrated product R&D, , integrated business and finance, and integrated intelligent manufacturing", creating competitive advantages of high quality, high efficiency, and high technology.

In terms of improving technical capabilities, in the first half of this year, Xingyu Shares continued to strengthen the development and application of new technologies, including but not limited to: continuous development of DLP projection smart headlamps based on DMD technology, continuous development of HD lighting and projection smart headlamps based on technology, pixelated interactive lamps based on Micro LED/Mini LED technology, innovative R&D of smart digital grilles/digital bumpers based on innovative materials and light source technologies, and development of luminaire controllers HCM/RCM/ and self-closed-loop systems for sensing lamps.

In 2024, the company achieved a comprehensive adjustment of its customer structure (shifting from primarily joint-venture customers such as German and Japanese brands to primarily independent brands and new energy vehicle customers), entering a new growth cycle. Meanwhile, products continue to be upgraded, with continuous strengthening of new technology development and application. Many institutions have raised revenue forecasts, expressing optimism about the company's future development.

According to available information, Xingyu Shares focuses on the design, development, manufacturing, and sales of automotive lights (primarily for passenger cars), and is a leading provider of comprehensive automotive lighting solutions in China. As a provider of comprehensive automotive lighting system solutions, Xingyu Shares possesses strong vertical integration capabilities in light design, development, and manufacturing. It serves as the Vice Chairman Unit of the Automotive Lamp Branch of the China Association of Automobile Manufacturers and the Vice Chairman Unit of the Chinese Committee of the International Commission on Illumination and Light Signals for Vehicles. The company currently has design and development capabilities covering lighting products, automotive electronics, molds, and process equipment, as well as a nationally accredited laboratory, forming a complete independent R&D system.

Regarding the company's products, they mainly include automotive headlamps, front grille lights, daytime running lights, rear combination lamps, ambient lights, interior lights, fog lamps, and automotive electronics-related products. It is reported that the continued upgrade of LED headlamps towards ADB and DLP further increases the per-vehicle supporting value of headlamps. Currently, the company's ADB headlamps have achieved customer matching and mass production, and DLP headlamps have also secured projects.

Regarding customers, the company's clientele includes Volkswagen Group, FAW-Volkswagen, SAIC Volkswagen, Daimler, Beijing Benz, BMW Group, Brilliance BMW, General Motors, SAIC-GM, FAW Toyota, GAC Toyota, Nissan Japan, Dongfeng Nissan, GAC Honda, Dongfeng Honda, FAW Hongqi, Chery Automobile, Geely Automobile, , Li Auto, NIO, XPeng Motors, and a certain internationally renowned new energy vehicle manufacturer, among many other domestic and international automotive OEMs.

In recent years, the company has also been honored with the highest honor award issued by Volkswagen Group, FAW Toyota's "Unity and Prosperity Award", GAC Toyota's "Original Price Excellence Award", Geely Automobile's "Quality Excellence Award", and FAW Bestune's "New Bestune · Golden Steed Award", among other distinctions.

While consolidating its existing customer base, Xingyu Shares is also vigorously expanding into luxury brands and new energy vehicle manufacturers, with new energy customers expected to become the main source of future growth.

In addition, the production capacity of the company's factory in Serbia is gradually being released, and Mexico Xingyu and USA Xingyu have been registered and established. The company will continue to advance its global layout and expand into overseas markets.

In the past two years, despite the complex economic environment, Xingyu Shares has achieved steady performance growth. In 2023, Xingyu Shares reported revenue of RMB 10.248 billion, a Year-on-year (YoY) increase of 24.25%, and net profit attributable to shareholders of the listed company of RMB 1.102 billion, a Year-on-year (YoY) increase of 17.07%. In 2023, the company undertook new product R&D projects for 58 car models and achieved mass production for 50 car models, providing strong support for the company's future development with high-quality new projects.

In the first quarter of 2024, the company achieved revenue of approximately RMB 2.412 billion, a year-on-year increase of 25.47%; net profit attributable to shareholders of the listed company was approximately RMB 243 million, a year-on-year increase of 19.23%.

It is worth mentioning that at the 18th China Brand Festival held on August 8, the "2024 Top 500 Chinese Brands" list was announced. According to statistics, 15 lighting and LED companies made the list thanks to their strong strength, with Xingyu Shares on the list, boasting a brand value of RMB 14.844 billion, ranking 377th on the list, an improvement of 27 places compared to last year.