Investment Highlights - Yuxin Electronics, established in 2003 and headquartered in Chongqing, focuses on the R&D, manufacturing, and sales of electronic components for general machinery, non-road vehicles, and garden tools [1] - The company’s main products are categorized into three types: (1) General gasoline engine power products, (2) Generator power system accessories, and (3) New energy products [1] - In Q1 2025, the company reported a significant increase in net profit attributable to shareholders, up 280% year-on-year, with revenue reaching 185 million yuan, a 94% increase [1] Financial Performance - In Q1 2025, the company achieved a gross margin of 26.31%, an increase of 1.82 percentage points year-on-year, and a net margin of 13.30%, up 7 percentage points [2] - The improvement in profit margins is attributed to strong product technology and quality customer resources, along with a reduction in expense ratios as production scales up [2] Innovation and R&D - The company emphasizes innovation and R&D, maintaining a research and development expense ratio above 5% since 2022 [2] - New business ventures in non-road new energy power equipment and agricultural drone charging products are entering the production phase, with small batch supplies already delivered to leading industry clients [2] - A collaboration agreement has been signed with Harbin Institute of Technology for the development of smart robot joint motors, indicating a strategic move into the robotics sector [2] Revenue and Profit Forecast - Revenue projections for 2025-2027 are 735 million, 899 million, and 1.025 billion yuan, representing year-on-year growth rates of 34.01%, 22.28%, and 14.00% respectively [2] - Net profit forecasts for the same period are 88 million, 124 million, and 145 million yuan, with expected growth rates of 66.87%, 40.49%, and 16.97% [2] - Corresponding PE ratios are estimated at 33.64, 23.95, and 20.47 for the years 2025, 2026, and 2027 [2]
中邮证券：首次覆盖瑜欣电子给予增持评级