YUTO TECH.(SZ:002831) Minsheng Securities·2024-08-27 09:00Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 22.07 CNY [3]. Core Views - The company achieved revenue growth in H1 2024, with total revenue of 7.353 billion CNY, a year-on-year increase of 15.52% [2]. - The company is benefiting from improved downstream demand and significant growth in overseas revenue, which reached 2.219 billion CNY, up 32.2% year-on-year, accounting for 30.18% of total revenue [2]. - The overall profitability remains stable, with a gross margin of 23.6% and a net margin of 6.86% in H1 2024 [2]. - The company is expected to see a recovery in profits driven by cost reductions and product upgrades, with projected net profits for 2024-2026 of 1.611 billion CNY, 1.851 billion CNY, and 2.069 billion CNY respectively [2][3]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 7.353 billion CNY, with a net profit of 497 million CNY and a non-recurring net profit of 522 million CNY, reflecting increases of 15.52%, 15.15%, and 3.96% respectively [2]. - The second quarter of 2024 saw revenue of 3.878 billion CNY, with a net profit of 278 million CNY, marking a year-on-year increase of 12.28% and 11.23% [2]. - The company’s gross margin for H1 2024 was 23.6%, with a slight decrease of 0.01 percentage points, while the net margin decreased by 0.02 percentage points to 6.86% [2]. Revenue Breakdown - Revenue from premium paper packaging, packaging supporting products, and eco-friendly paper-plastic products in H1 2024 was 5.181 billion CNY, 1.39 billion CNY, and 547 million CNY, representing year-on-year growth of 15.22%, 11.1%, and 28.84% respectively [2]. - The company’s overseas revenue accounted for 30.18% of total revenue in H1 2024, indicating a strong reliance from major clients and benefits from the relocation of production capacities [2]. Future Outlook - The company is expected to continue expanding its market share and revenue, particularly in the 3C packaging sector, as consumer demand improves [2]. - Projected net profits for the years 2024, 2025, and 2026 are 1.611 billion CNY, 1.851 billion CNY, and 2.069 billion CNY, with corresponding PE ratios of 13X, 11X, and 10X [3][6].