Yongjin Technology (603995) 华创证券·2024-10-31 12:24Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 25.32 CNY per share, indicating a potential upside of approximately 33% from the current price [1]. Core Insights - The company achieved a revenue of 30.941 billion CNY in the first three quarters of 2024, representing a year-on-year growth of 12.18%. The net profit attributable to shareholders reached 584 million CNY, up 85.12% year-on-year, while the net profit after deducting non-recurring items was 461 million CNY, reflecting a growth of 59.30% [1]. - The sales volume of 300 series cold-rolled stainless steel was 1.9222 million tons, and 400 series cold-rolled stainless steel was 369,900 tons, totaling 2.2921 million tons, which is a 17.71% increase year-on-year. The company is on track to meet its annual sales target of 3.2 million tons for 2024 [1]. - The net profit per ton of steel increased to approximately 201 CNY, a rise of 52 CNY compared to the same period in 2023. The gross profit margin for the first three quarters was 5.74%, and the net profit margin was 2.39%, both showing improvements from the end of 2023 [1]. Financial Summary - The company’s total revenue for 2023 is projected at 39.874 billion CNY, with expected growth rates of 5.2% in 2024, 10.3% in 2025, and 4.4% in 2026. The net profit attributable to shareholders is forecasted to be 725 million CNY in 2024, reflecting a significant increase of 60.1% year-on-year [2]. - The earnings per share (EPS) is expected to rise from 1.24 CNY in 2023 to 1.98 CNY in 2024, with a price-to-earnings (P/E) ratio projected to decrease from 15 in 2023 to 10 in 2024 [2]. - The company’s total assets are estimated to grow from 12.583 billion CNY in 2023 to 13.443 billion CNY in 2024, with a debt-to-asset ratio of 57.06% [3].