YDC(SH:605555) GF SECURITIES·2024-07-23 07:31Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 20.44 CNY per share based on a PE ratio of 18x for 2024 [3][7]. Core Insights - The company reported a revenue of 1.86 billion CNY for the first half of 2024, representing a year-over-year increase of 38.8%. The net profit attributable to shareholders was 210 million CNY, up 20.4% year-over-year, with a net profit margin of 11.1% [2][3]. - The report highlights that despite apparent declines, the core business profitability has improved, particularly when excluding foreign exchange gains. The company is expected to maintain high growth in revenue driven by major customer orders and improvements in production efficiency [6][26]. Financial Summary - Revenue projections for 2024 to 2026 are 4.23 billion CNY, 5.42 billion CNY, and 6.84 billion CNY, reflecting year-over-year growth rates of 31%, 28%, and 26% respectively [3]. - The company’s EBITDA is forecasted to grow from 881 million CNY in 2024 to 1.03 billion CNY in 2026, indicating a strong upward trend in operational profitability [27]. - The net profit attributable to shareholders is expected to increase from 423 million CNY in 2024 to 684 million CNY in 2026, with corresponding growth rates of 31.2% and 26.2% [27].