YOFC(601869) 海通证券·2024-11-18 04:45Investment Rating - Outperform rating maintained for the company [2] Core Views - Q3 revenue showed year-on-year and quarter-on-quarter growth, with domestic demand expected to reach an inflection point [6] - The company acquired a 30% stake in Baosheng Submarine Cable, strengthening its competitiveness in the submarine cable and marine engineering sectors [7] - Revenue for 2024-2026 is forecasted to be RMB 12.849 billion, RMB 13.487 billion, and RMB 13.995 billion, with net profits of RMB 878 million, RMB 1.018 billion, and RMB 1.167 billion respectively [7] Financial Performance - 24Q1-Q3 revenue was RMB 8.694 billion, a year-on-year decrease of 13.31%, with net profit of RMB 573 million, down 34.94% year-on-year [6] - 24Q3 revenue was RMB 3.346 billion, up 7.46% year-on-year and 13.01% quarter-on-quarter, with net profit of RMB 195 million, down 28.65% year-on-year [6] - Gross margin for 24Q1-Q3 was 27.81%, up 1.83 percentage points year-on-year, while net margin was 6.59%, down 2.19 percentage points [6] Business Segments - Fiber preform and fiber segment revenue for 2024E is projected at RMB 2.908 billion, with a gross margin of 53.02% [10] - Optical cable segment revenue for 2024E is projected at RMB 4.944 billion, with a gross margin of 17.65% [10] - Optical devices and modules segment revenue for 2024E is projected at RMB 1.544 billion, with a gross margin of 18.00% [10] Valuation and Forecasts - 2024-2026 EPS is forecasted at RMB 1.16, RMB 1.34, and RMB 1.54 respectively [7] - The company's 2025 dynamic PE range is estimated at 24-26X, with a fair value range of RMB 32.24-34.93 [7] Market Performance - The company's stock price ranged between RMB 20.61 and RMB 33.49 over the past 52 weeks [2] - The stock underperformed the Haitong Composite Index by 28.64% over the past year [3] Industry Comparison - The average PE ratio for comparable companies in 2024E is 37X, with an average EPS of RMB 0.69 [13]