Yoke Technology(002409) Haitong Securities·2024-07-25 12:31Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Views - The company is expected to achieve a rapid growth in net profit in the first half of 2024, with an estimated net profit of 510-580 million yuan, representing a year-on-year increase of 50%-70% [5][6]. - The growth is driven by increased market demand for liquefied natural gas (LNG) as a clean energy source, recovery in the integrated circuit industry, and growth in the display panel sector due to the upcoming Olympic year [5][6]. - The company holds a high market share in precursor products and benefits from domestic clients' capacity expansion, with a focus on domestic substitution for photoresist products [5][6]. Financial Summary - The company’s projected net profits for 2024-2026 are 963 million yuan, 1.31 billion yuan, and 1.72 billion yuan, respectively, with corresponding EPS of 2.02 yuan, 2.75 yuan, and 3.61 yuan [6][10]. - Revenue is expected to grow from 4.74 billion yuan in 2023 to 10.63 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 28.7% [7][10]. - The gross margin is projected to improve from 31.3% in 2023 to 33.9% in 2026, indicating enhanced profitability [10][11]. Market Position and Competitive Advantage - The company is the first domestic manufacturer of LNG insulation materials to receive certification from GTT and classification societies, which strengthens its competitive position [6][8]. - The company has established contracts with major shipbuilding manufacturers for LNG transport vessels, ensuring a robust order backlog and long-term profitability [6][8]. - The company’s proprietary technology and patents provide a competitive edge in the semiconductor materials market, particularly in the context of increasing domestic demand [5][6].