YAPP(603013) China Post Securities·2024-09-26 07:00Investment Rating - The report upgrades the investment rating to "Buy" [2][4] Core Views - The company, Yapu Co., Ltd., is a leading supplier in the automotive energy storage sector, maintaining a strong market position with a focus on overseas expansion and high dividend potential [3][4] - The growth drivers include an increase in core product prices and ongoing expansion in overseas markets, with a strategic shift towards hybrid fuel systems and new business areas such as battery pack housings and hydrogen storage systems [3][4][39] - The company has a solid track record of cash dividends since its listing, with a cumulative cash dividend of 1.642 billion yuan from 2018 to 2023, and a projected dividend yield of 4.85% for 2024 [3][4][41] Summary by Sections Company Overview - Yapu Co., Ltd. has established itself as a pioneer in the automotive energy storage field, producing China's first plastic fuel tank and maintaining the largest market share domestically and third globally in fuel storage systems [10][15] - The company has a stable revenue scale, with annual revenues exceeding 8 billion yuan and a consistent overseas revenue contribution of around 40% [3][15][21] Growth Drivers - The company benefits from regulatory upgrades that drive up the prices of fuel tanks, with significant advancements in technology such as the YNTF® two-piece blow molding process [25][26] - The rise of hybrid vehicles presents an opportunity for the company to optimize its customer structure and enhance sales, with expectations of significant new product volumes in the coming years [27][28] - The company is actively developing new business lines, including battery pack housings and thermal management systems, to adapt to the evolving automotive market [39][40] Dividend Potential - Yapu Co., Ltd. has maintained a high dividend payout ratio, with an average dividend rate of 61.1% since its IPO, supported by increasing cash reserves and manageable capital expenditures [41][43] - The company’s cash flow situation is robust, with a significant increase in cash reserves from 613 million yuan in 2018 to 2.1 billion yuan in 2024 [43][44] Earnings Forecast and Investment Recommendations - The forecast for operating revenue from 2024 to 2026 is 8.706 billion yuan, 9.235 billion yuan, and 9.704 billion yuan respectively, with corresponding net profits of 542 million yuan, 613 million yuan, and 712 million yuan [4][45] - The current stock price reflects a price-to-earnings ratio of 12.6, 11.2, and 9.6 for the years 2024, 2025, and 2026 respectively, indicating strong investment value [4][45]