YTOT(300790) Soochow Securities·2024-11-29 07:11Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [4]. Core Insights - The company, Yutong Optical, is a leading player in the global security lens market, with a strong recovery in its main business and a diversified layout that enhances its long-term competitiveness [2][4]. - The automotive optical segment is positioned as a second growth curve, with advanced molding technology for aspheric glass, which is expected to drive long-term growth [3][4]. - The traditional security and smart home businesses are anticipated to benefit from industry recovery, leading to steady growth [4]. Summary by Sections 1. Recovery of Main Business and Multi-Sector Layout - Yutong Optical has maintained its leading position in the global security lens market, with a market share of 43.25% in 2023 [4]. - The company achieved a revenue of 1.99 billion yuan in the first three quarters of 2024, a year-on-year increase of 34%, and a net profit of 130 million yuan, up 221% [2][4]. 2. Automotive Lens as a Second Growth Curve - The automotive lens market is projected to grow at a compound annual growth rate (CAGR) of 17.4% from 2021 to 2023, with the market size expected to reach 23 billion yuan by 2025 [3]. - The company’s automotive products include various types of lenses and components, with significant revenue growth in this segment, achieving 120 million yuan in revenue in the first half of 2024, a 34% increase [3][4]. 3. Traditional Security and Smart Home Business - The security lens market is recovering, with a stable growth forecast supported by the increasing demand for smart home products [4]. - The company has established long-term partnerships with major security firms, enhancing its market position [4]. 4. Profit Forecast and Investment Recommendations - The company is expected to achieve net profits of 180 million yuan, 260 million yuan, and 340 million yuan from 2024 to 2026, with corresponding price-to-earnings ratios of 31, 22, and 17 [4][5].