UE(603600) Tianfeng Securities·2025-02-04 14:36Investment Rating - The report maintains an "Accumulate" rating for Yongyi Co., Ltd. (603600) [6] Core Views - The resilience of the export business is expected, with stable and marginally improving demand for furniture in the U.S. market [1] - The company has established two major overseas bases in Vietnam and Romania, enhancing its production capacity and customer base [2][3] - The company is actively expanding into new markets and customers, particularly focusing on the top 30 GDP countries and emerging markets along the Belt and Road [4] - The financial forecast indicates a significant growth in sales revenue and net profit for the years 2024 to 2026, driven by both external demand recovery and internal strategic initiatives [5] Summary by Sections Export Business Outlook - U.S. furniture demand is showing signs of stability and improvement, supported by expected interest rate cuts [1] - Retail sales data from the U.S. indicates a positive trend in furniture sales since Q2 2024 [1] Overseas Production Bases - The Vietnam base has been operational since 2018, focusing on capacity expansion and local supply chain development, with most U.S. shipments now produced there [2] - The Romanian base began production in the first half of 2023 and is expected to contribute to revenue growth in the coming years [3] Market Expansion Strategy - The company is committed to deepening its presence in existing markets while exploring new opportunities, particularly in the U.S. retail sector [4] - A mature overseas sales team has been established to target major U.S. retail channels, contributing to significant revenue growth in 2024 [4] Financial Performance and Projections - The company forecasts net profits of 330 million, 410 million, and 490 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.00, 1.25, and 1.49 yuan [5] - The projected P/E ratios for the same years are 13x, 10x, and 8x, indicating a favorable valuation outlook [5]