YOFC(601869) Guotai Junan Securities·2024-11-11 12:20Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company has signed a share acquisition agreement to expand its laser equipment business, which is expected to enhance its downstream layout and diversify its operations [1] - The profit forecast for 2024-2026 remains unchanged, with projected net profits of 724 million, 1.017 billion, and 1.33 billion yuan respectively, corresponding to EPS of 0.96, 1.34, and 1.76 yuan [1] - The target price is maintained at 38.46 yuan, with the current price at 29.09 yuan, indicating potential upside [1] Summary by Sections Acquisition Details - The company plans to acquire a 59.1837% stake in Pentium Laser (Zhejiang) Co., Ltd. for approximately 298.7 million yuan and a controlling stake in Cutlite Penta S.r.l. for a total consideration of about 448.85 million yuan [1] - The acquisition is expected to be completed soon, leading to consolidation in financial statements [1] Business Diversification - The acquisition will allow the company to enhance its capabilities in laser application equipment and leverage established sales channels and customer resources from the acquired companies [1] - The company has already established a comprehensive upstream layout in fiber laser technology, and this acquisition will facilitate further market expansion [1] Financial Forecast - Revenue is projected to decline from 13.35 billion yuan in 2023 to 11.7 billion yuan in 2024, before recovering to 13.6 billion yuan in 2025 and 15.648 billion yuan in 2026 [5] - Net profit is expected to decrease significantly in 2024 but recover in subsequent years, reflecting a strategic shift in business focus [5]