YOFC(SH:601869) Guotai Junan Securities·2024-08-27 08:02Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 33.77 yuan, unchanged from the previous rating [2][4]. Core Views - The report indicates an upward revision of profit forecasts while maintaining the target price and "Accumulate" rating. The company's performance aligns with expectations, and the acquisition of RFS contributes positively to investment returns. The main business remains under pressure, but innovation and cost reduction efforts keep the company in a leading position. The company continues its internationalization and diversification strategy [3][4]. Financial Performance - For the first half of 2024, the company achieved revenue of 5.348 billion yuan, a year-on-year decrease of 22.66%. The net profit attributable to shareholders was 378 million yuan, down approximately 37.8%, which meets market expectations. The gross margin improved by about 3.4 percentage points compared to 2023, aided by diversification [4]. - The acquisition of RFS in Germany and Suzhou confirmed a one-time gain of approximately 194 million yuan, positively impacting the company's performance [4]. Business Challenges and Innovations - The main business faces challenges, with the optical cable revenue declining by 29% to 1.929 billion yuan and fiber and optical rod revenue down approximately 31.4% to 1.279 billion yuan in the first half of 2024. Despite these challenges, the company maintains a leading position through continuous cost reduction and efficiency improvements, particularly in the artificial intelligence sector and long-distance applications [4]. Internationalization and Diversification - The company reported overseas revenue of 1.77 billion yuan in the first half of 2024, optimizing its overseas production capacity. The optical cable production capacity in Mexico has entered trial production, while expansions in Poland and Indonesia are progressing smoothly. The third-generation semiconductor market is also expanding, with the main factory in Wuhan expected to commence production in July 2025, becoming one of the largest and most advanced silicon carbide factories in China [4]. Financial Summary - The updated net profit forecasts for 2024-2026 are 614 million yuan, 873 million yuan, and 1.175 billion yuan, respectively, with corresponding EPS of 0.81 yuan, 1.15 yuan, and 1.55 yuan [4][9].