YDC(SH:605555) Southwest Securities·2024-11-04 13:01Investment Rating - The report maintains a "Hold" rating for the company [1] Core Views - The company's home appliance business continues to grow with new customers and product categories, contributing to sustained revenue growth. The automotive parts business is also expanding rapidly, improving profitability [2][3] - The company achieved a revenue of 2.99 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 40.3%. The net profit attributable to shareholders was 300 million yuan, up 14.5% year-on-year [2] - The gross margin for Q3 2024 decreased by 2.1 percentage points to 17.4% due to high base effects from the previous year and increased depreciation costs [3] Financial Summary - Revenue projections for 2024-2026 are 3.66 billion yuan, 4.59 billion yuan, and 5.56 billion yuan, respectively, with growth rates of 32.01%, 25.41%, and 20.98% [4] - The net profit attributable to shareholders is forecasted to be 403.45 million yuan in 2024, 508.90 million yuan in 2025, and 625.83 million yuan in 2026, with growth rates of 25.23%, 26.14%, and 22.98% respectively [4] - The earnings per share (EPS) are projected to be 1.08 yuan in 2024, 1.37 yuan in 2025, and 1.68 yuan in 2026 [4] - The return on equity (ROE) is expected to improve from 11.79% in 2023 to 15.62% in 2026 [4] Business Development - The home appliance segment is expected to continue its growth trajectory through partnerships, such as the collaboration with SharkNinja, which is anticipated to drive revenue growth [2] - The automotive parts business is expanding its customer base, including partnerships with well-known suppliers, and is expected to achieve economies of scale as projects move into mass production [2]