YOFC(SH:601869) Haitong Securities·2024-09-11 01:11Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights that the short-term demand for optical fibers and cables is under pressure, but there are expectations for new technologies like hollow-core fibers to open up long-term growth opportunities [5][6] - The company reported a revenue of 5.348 billion yuan for the first half of 2024, a year-on-year decrease of 22.66%, with a net profit of 378 million yuan, down 37.77% year-on-year [5] - The gross margin improved to 27.90%, up 1.81 percentage points year-on-year, while the net margin was 7.06%, down 1.71 percentage points year-on-year [5] - The international strategy has shown significant results, with overseas revenue accounting for over 30% of total revenue, reaching 1.766 billion yuan in the first half of 2024 [5][6] Financial Summary - The company is expected to generate revenues of 13.174 billion yuan, 13.738 billion yuan, and 14.339 billion yuan for the years 2024, 2025, and 2026 respectively, with net profits of 1.002 billion yuan, 1.039 billion yuan, and 1.168 billion yuan for the same years [6][10] - The earnings per share (EPS) are projected to be 1.32 yuan, 1.37 yuan, and 1.54 yuan for 2024, 2025, and 2026 respectively [6][10] - The report provides a dynamic PE range of 20-22X for 2024, corresponding to a fair value range of 26.44-29.09 yuan [6] Business Segment Analysis - The revenue from the optical fiber and preform business is expected to decline to 2.985 billion yuan in 2024, while the cable business is projected to generate 5.052 billion yuan [8] - The optical devices and modules segment is anticipated to grow to 1.617 billion yuan in 2024, with a year-on-year growth of 10% [8] - Other products and services are expected to generate 3.259 billion yuan in 2024, reflecting a growth of 5% year-on-year [8] Market Comparison - The report compares the company with peers, indicating that the average PE for comparable companies is around 21 for 2024, suggesting a competitive market environment [9]