Yongjin Technology (SH:603995) Jin Rong Jie·2025-04-09 14:09Core Viewpoint - The financial report of Yongjin Co., Ltd. for 2024 indicates a significant increase in net profit, but a slowdown in revenue growth highlights challenges in the core business profitability and market demand [1][4][5]. Revenue Growth and Industry Pressure - In 2024, Yongjin Co., Ltd. achieved an operating revenue of 41.861 billion yuan, a year-on-year increase of 4.98%, which is an improvement from 0.81% in 2023 but significantly lower than 53.43% in 2021 and 29.16% in 2020 [4]. - The slowdown in revenue growth reflects the severe domestic and international conditions faced by the stainless steel industry, despite a 16.95% increase in the production of cold-rolled stainless steel products [4]. - The rolling quarter-on-quarter revenue growth for 2024 was -3.18%, indicating significant volatility in quarterly revenues, potentially linked to cyclical fluctuations in stainless steel prices and the company's market responsiveness [4]. Net Profit and Non-Recurring Profit Discrepancy - The attributable net profit for 2024 was 800.5 million yuan, a year-on-year increase of 77.75%, while the non-recurring net profit was 678 million yuan, up 58.85% [5]. - The gap of 127 million yuan between non-recurring and attributable net profit suggests a substantial contribution from non-core business income, such as asset disposals and government subsidies, rather than actual profitability from core operations [5]. - The gross profit margin for 2024 was 5.74%, an increase from 4.79% in 2023, indicating room for improvement in cost control and product value enhancement [5]. Overseas Expansion and Associated Risks - In 2024, Yongjin Co., Ltd. accelerated its overseas market expansion, with projects in Vietnam and Thailand reaching significant milestones [7]. - The company has established a customer base in key overseas markets such as South Korea, Japan, Mexico, India, and Turkey, but faces challenges from geopolitical risks, currency fluctuations, and local policy changes [7]. - Despite efforts to enhance market share in the appliance and electronics sectors through strategic partnerships, the company’s brand influence and market share in overseas markets remain in the early stages compared to the domestic market [7].