UE(603600) Xinda Securities·2025-01-14 08:06Investment Rating - The report maintains an "Accumulate" rating for Yongyi Co., Ltd. (603600) [1][3] Core Views - The company is expected to experience robust growth momentum in the mid-term, with a projected revenue growth of over 20% in 2025 [2][3] - The report highlights the strong performance of export data, indicating structural opportunities in export stocks, particularly in the furniture sector [1][2] - The company is expanding its overseas production capacity, particularly in Vietnam and Romania, which is expected to enhance its competitive advantage [3] Summary by Sections Financial Performance - In 2022, the total revenue was 4,055 million yuan, with a year-on-year decline of 13.0%. The revenue is projected to recover to 4,790 million yuan in 2024, reflecting a growth rate of 35.4% [4][6] - The net profit attributable to the parent company was 335 million yuan in 2022, with an expected increase to 423 million yuan in 2025, representing a growth rate of 32.2% [4][6] - The gross margin is expected to stabilize around 23.1% from 2025 onwards, indicating improved profitability [4][6] Market Dynamics - The report notes a positive trend in short-term orders and steady improvement in profitability, driven by resilient overseas demand and a recovering U.S. housing market [2][3] - The company is leveraging new distribution channels and expanding its customer base, particularly targeting major retailers like Costco and Sam's [2][3] Growth Projections - The forecast for net profit for 2024-2026 is 320 million yuan, 423 million yuan, and 528 million yuan respectively, with corresponding P/E ratios of 12.4X, 9.4X, and 7.5X [3][4] - The report emphasizes the company's long-term growth potential through product and regional expansion, which is expected to drive valuation upwards [2][3]