Etron(603380) 国信证券·2024-12-05 08:52Investment 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 ROE is expected to improve from 9 9% in 2023 to 14 3% by 2026 [3] Business Segments - Industrial control business accounted for over 40% of total revenue in 1H24 [2] - Communication business is expected to grow 51% in 2024, reaching 400 million yuan [18] - Industrial control revenue is projected to increase 16% in 2024 to 901 79 million yuan [18] Valuation and Projections - The company's PE ratio is expected to decrease from 20 7 in 2024 to 13 8 by 2026 [3] - Revenue is projected to grow from 2 186 billion yuan in 2024 to 2 800 billion yuan in 2026 [3] - Net profit is forecasted to increase from 177 million yuan in 2024 to 266 million yuan in 2026 [3] Industry Comparison - The EMS industry average PE for 2025 is 33x, with Yidelong's PE estimated at 30-32x [27] - Comparable companies include Universal Scientific Industrial, Kaifa Technology, and Wingtech Technology [27]