Etron(603380) 国信证券·2024-12-05 08:10Investment Rating - The report maintains an "Outperform" rating for Yidelong (603380 SH) [2][4] Core Views - Yidelong's revenue grew 14% YoY in 1-3Q24, with net profit attributable to shareholders increasing 34% YoY [2] - The company achieved a gross margin of 26 59% in 1-3Q24, up 3 44 percentage points YoY [2] - Industrial control and communication sectors contributed significantly to growth, with industrial control revenue up 29% YoY and communication equipment revenue up 76% YoY in 1H24 [2] - The global EMS market is projected to grow from 799 billion by 2028, with a CAGR of 4 6% [2] Financial Performance - 1-3Q24 revenue reached 1 552 billion yuan, with net profit of 139 million yuan [2] - 3Q24 revenue was 539 million yuan, with net profit of 51 million yuan [2] - The company's net profit margin improved to 9 12% in 1-3Q24, up 1 28 percentage points YoY [2] Business Segments - Industrial control accounted for over 40% of total revenue in 1H24 [2] - Communication equipment revenue is expected to grow 51% in 2024, reaching 400 million yuan [19] - Industrial control revenue is projected to increase 16% in 2024 to 901 79 million yuan [19] Valuation and Projections - The company's 2024-2026 net profit is forecasted at 177/227/266 million yuan, with YoY growth of 32 8%/28 4%/16 8% [2] - The target price range is 30 59-32 63 yuan, representing a 31 81%-40 60% upside potential [27][29] - The 2025E PE ratio is estimated at 30-32x [29] Industry Comparison - The EMS industry average PE for 2025 is 33x, with Yidelong trading at a discount [27] - Comparable companies include Universal Scientific Industrial, Kaifa Technology, and Wingtech Technology [27]