UE(603600) 华福证券·2024-11-15 00:22Investment Rating - The report initiates coverage on Yongyi Co Ltd (603600 SH) with a "Buy" rating [5][7] Core Views - Yongyi achieved record Q3 revenue with strong profit growth on a low base [1] - Overseas sales outperformed industry despite weak demand, driven by new clients and channels [2] - Domestic brand building is accelerating, with self-brand revenue up 67% YoY [3] - The company increased dividend frequency, demonstrating confidence in long-term development [4] Financial Performance - Q3 2024 revenue reached 1 34 billion yuan, up 38 79% YoY [1] - Net profit attributable to parent company grew 42 3% YoY to 98 million yuan in Q3 2024 [1] - Self-brand revenue accounted for 20% of total revenue in 2023, reaching 713 million yuan [3] - 2023 cash dividend payout ratio was 44%, with mid-year dividend introduced in 2024 [4] Overseas Business - Despite 7 6% decline in China's office chair exports in Q3 2024, Yongyi achieved 38 8% revenue growth [2] - Key new clients include Costco and Sam's Club, with shipments already underway [2] - Vietnam and Romania production bases provide competitive advantages in global supply chain [24][25] Domestic Strategy - 2023 marked the first year of aggressive domestic brand development [3] - Flow series flagship products successfully launched [3] - Online channels expanded to include TikTok and Pinduoduo, with GMV up 256% during 2023 Double 11 [33] Future Outlook - Revenue growth projected at 31%, 17 6%, and 13 8% for 2024-2026 [5] - Net profit growth expected at 8%, 27%, and 25% for 2024-2026 [5] - EPS forecast at 0 98, 1 23, and 1 54 yuan for 2024-2026 [5] Industry Context - China's office chair exports grew 15 8% YoY in H1 2024 [16] - US furniture retailers' inventory-to-sales ratio showed improvement in 2024 [17] - Key clients like HNI and Office Depot demonstrated improving performance [18][20]