Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The company, Yabo Xuan, specializes in PCBA electronic manufacturing services across three main sectors: consumer electronics, automotive electronics, and industrial control. It has been recognized as a national-level "little giant" enterprise in July 2023 [2][7]. - In 2023, the company achieved a revenue of 354 million yuan, representing a year-on-year growth of 49.38%, with a net profit of 43.06 million yuan and gross/net profit margins of 17.52% and 12.17%, respectively [2][3]. - The company is expected to see net profits of 46 million yuan, 56 million yuan, and 73 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 0.57, 0.70, and 0.91 yuan per share [2][3]. Company Overview - Yabo Xuan focuses on providing comprehensive PCBA services, including BOM optimization, technical support, electronic assembly, and inspection testing. Its client base includes well-known companies such as Deep Tianma and Delixi Electric [2][7]. - The company has established long-term partnerships with major clients, which enhances its competitive advantage and stability in the supply chain [16][18]. Financial Performance - The company’s revenue for 2022 was 237 million yuan, with a year-on-year growth of 23.2%. The projected revenues for 2024, 2025, and 2026 are 414 million yuan, 502 million yuan, and 623 million yuan, respectively [3][4]. - The gross profit margin is expected to improve from 19.6% in 2024 to 20.5% in 2026, while the net profit margin is projected to stabilize around 11% to 11.6% during the same period [4][5]. Industry Insights - The PCBA electronic manufacturing service industry in China is projected to reach a market size of approximately 406.1 billion yuan in 2023, with a compound annual growth rate of 4.6% from 2014 to 2018 [3][25]. - The global EMS (Electronic Manufacturing Services) market is expected to grow to 724.2 billion USD by 2024, driven by increasing demand for electronic products and the maturation of the EMS model [24][25]. Expansion Plans - Yabo Xuan plans to invest 153.63 million yuan in expanding its high-end electronic manufacturing capacity, which is expected to generate annual sales revenue of approximately 456.28 million yuan upon reaching full production [20][22]. - The company aims to enhance its production capabilities by adding new placement machines, which will significantly increase its output capacity across various sectors [20][22].
开源证券：雅葆轩：北交所首次覆盖报告：PCBA电子制造“小巨人”，拓展汽车电子领域助力增长-20240812