YTOT(SZ:300790) Huachuang Securities·2024-10-30 21:07Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 20.2 yuan [1]. Core Insights - The company has shown significant growth in its security and automotive optical segments, with Q3 2024 performance meeting expectations. Revenue for the first three quarters of 2024 reached 1.993 billion yuan, a year-over-year increase of 33.67%, while net profit attributable to shareholders was 133 million yuan, up 221.38% year-over-year [1]. - The security business has rebounded after a period of decline, with six consecutive quarters of revenue growth from Q2 2023 to Q3 2024. The automotive optical business is being actively developed, contributing to a new growth curve for the company [1][2]. - The company is expanding its production capacity and upgrading its product structure, particularly in the automotive optical sector, which is expected to become a significant growth driver [1]. Financial Performance Summary - For Q3 2024, the company achieved revenue of 745 million yuan, a year-over-year increase of 33.11%, and a net profit of 49 million yuan, up 235.13% year-over-year [1]. - The first half of 2024 saw revenue of 1.249 billion yuan, with the security lens business contributing 778 million yuan, reflecting a year-over-year growth of 34.00% [1]. - The company forecasts net profits for 2024, 2025, and 2026 to be 182 million yuan, 265 million yuan, and 330 million yuan, respectively, indicating strong growth potential [2][5]. Market Position and Valuation - The company is positioned as a leader in the security lens market, with a solid foundation and expanding automotive optical business. The target price of 20.2 yuan is based on a 25x P/E ratio for 2025, reflecting a valuation switch [1][2]. - The company’s total market capitalization is approximately 5.363 billion yuan, with a circulating market value of 4.126 billion yuan [3]. Growth Projections - Revenue is projected to grow from 2.145 billion yuan in 2023 to 4.116 billion yuan by 2026, with corresponding net profit growth from 31 million yuan to 330 million yuan over the same period [2][5]. - The company is expected to maintain a strong gross margin, with projections indicating an increase from 19.5% in 2023 to 23.1% by 2026 [5]. Conclusion - The report highlights the company's robust growth trajectory in both the security and automotive optical sectors, supported by strategic investments and market demand. The maintained "Recommended" rating reflects confidence in the company's ability to outperform the market in the coming months [1][2].