YDC(SH:605555) Yong Xing Zheng Quan·2024-09-05 03:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [6]. Core Views - The company is a leading manufacturer of vacuum cleaners and small home appliances, benefiting from overseas expansion and domestic substitution [4]. - The company has established strategic partnerships with major international brands, enhancing its product offerings and market presence [4]. - The company is positioned to capitalize on the growing demand for electric power steering (EPS) motors in the automotive sector, with significant projects already secured [4]. Summary by Sections Company Overview - The company, established in 2002, focuses on the research and production of motors and vacuum cleaners, primarily targeting the European and American markets [31]. - It is recognized as one of China's top ten vacuum cleaner exporters and has received various industry accolades [31]. Business Performance - The company's revenue grew from 1.201 billion to 2.775 billion yuan from 2019 to 2023, with a CAGR of approximately 23.29% [38]. - The net profit increased from 150 million to 322 million yuan during the same period, with a CAGR of about 21.04% [38]. - The company has seen a recovery in revenue since Q2 2023, maintaining positive growth for four consecutive quarters [38]. Product and Market Development - The company has a diverse product range, including vacuum cleaners and various small appliances, with significant contributions from both segments [41]. - The vacuum cleaner and small appliance segments accounted for 58.77% and 29.62% of total revenue in 2023, respectively [41]. - The company has formed strategic partnerships with leading brands such as TTI, HOT, and SharkNinja, expanding its market reach [33]. Future Growth Prospects - Revenue forecasts for 2024-2026 are projected at 3.585 billion, 4.388 billion, and 5.270 billion yuan, with year-on-year growth rates of 29.2%, 22.4%, and 20.1% respectively [5]. - The net profit is expected to reach 417 million, 519 million, and 638 million yuan during the same period, with corresponding growth rates of 29.5%, 24.5%, and 22.9% [5]. - The company is also exploring opportunities in the humanoid robot sector, leveraging its motor technology [4].