YDC(605555) Huafu Securities·2024-09-02 05:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark index within the next six months [10]. Core Views - The company reported a strong revenue growth of 38.8% year-on-year, reaching 1.86 billion yuan in the first half of 2024, with a net profit of 210 million yuan, up 20.8% year-on-year [1]. - The core home appliance business showed robust growth, with revenue of 1.644 billion yuan, a 37% increase year-on-year, driven by strong performance in vacuum cleaners and a growing multi-category product matrix [1]. - The automotive motor business also saw significant growth, with revenue of 148 million yuan, a 68.88% increase year-on-year, and the addition of seven new projects with a total sales value exceeding 1.5 billion yuan [1]. - The report anticipates that the pressure from high base effects on net profit margins has passed, and profitability is expected to improve in the second half of the year due to economies of scale in the automotive motor business [1]. Financial Summary - The company achieved a revenue of 2.775 billion yuan in 2023, with a projected revenue growth of 34% to 3.71 billion yuan in 2024, and further growth to 4.669 billion yuan in 2025 and 5.634 billion yuan in 2026 [2][6][7][8]. - Net profit is expected to grow from 322 million yuan in 2023 to 407 million yuan in 2024, 520 million yuan in 2025, and 644 million yuan in 2026, reflecting growth rates of 26%, 28%, and 24% respectively [2][6][7][8]. - The earnings per share (EPS) is projected to increase from 0.87 yuan in 2023 to 1.09 yuan in 2024, 1.40 yuan in 2025, and 1.73 yuan in 2026 [2][6][7][8]. - The price-to-earnings (P/E) ratio is expected to decrease from 18.9 in 2023 to 14.9 in 2024, and further to 11.7 in 2025 and 9.4 in 2026, indicating an attractive valuation [2][6][7][8].