YUTO TECH.(SZ:002831) Minsheng Securities·2024-10-29 06:09Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 24.68 yuan [6]. Core Views - The company reported a revenue of 49.05 billion yuan in Q3 2024, reflecting a year-on-year growth of 10.45%. For the first three quarters of 2024, revenue reached 122.59 billion yuan, up 13.44% year-on-year [2]. - The recovery in downstream consumption, driven by AI, is expected to continue boosting revenue in the consumer electronics sector. The report notes a slight recovery in the tobacco and alcohol packaging segments, despite ongoing destocking [2]. - The company's gross margin slightly decreased to 27.57%, while net margin improved to 13.01%. The decline in gross margin is attributed to the depreciation of the US dollar [3]. - The company is nearing the completion of its smart factory construction, which is expected to lead to a reduction in capital expenditures in the future [3]. Financial Performance Summary - For 2024, the company is projected to achieve a revenue of 17.25 billion yuan, representing a growth rate of 13.3%. The net profit attributable to shareholders is expected to be 1.61 billion yuan, with a growth rate of 12.0% [5]. - The report forecasts a steady increase in net profit for the years 2024 to 2026, with estimates of 1.61 billion yuan, 1.85 billion yuan, and 2.07 billion yuan respectively [5]. - The company's earnings per share (EPS) is projected to rise from 1.73 yuan in 2024 to 2.22 yuan in 2026, with corresponding price-to-earnings (PE) ratios decreasing from 14 to 11 [7][8]. Investment Recommendations - The company is building a one-stop printing service matrix covering various packaging fields, which is expected to enhance its market share and revenue growth as downstream consumption improves [4]. - The report highlights the potential for profit recovery driven by cost reductions and product upgrades, with a focus on improving return on equity (ROE) through decreased capital expenditures and stabilization of core business profitability [4]. - The company is also expanding its global business presence, particularly in North America and Southeast Asia, which is anticipated to contribute to high growth in overseas revenue [4].