YDC(605555) INDUSTRIAL SECURITIES·2025-02-21 03:20Investment Rating - The investment rating for the company is "Buy (Maintain)" [1] Core Views - The company is positioned for high growth through dual drivers in home appliances and automotive components, with a focus on expanding its product offerings and customer base [4][6] - The company has established a solid foundation in the vacuum cleaner OEM business and is diversifying into various small home appliances, benefiting from strong partnerships with key clients [14][62] - The automotive motor segment is expected to see significant growth due to domestic substitution opportunities and increasing order volumes [4][14] Summary by Sections Company Overview - The company was founded in 2002, initially focusing on small appliance motor R&D and manufacturing, and has since expanded into OEM for home appliances and automotive motors, primarily selling in the European and American markets [4][14] - The company has experienced steady revenue growth, with a CAGR of 18.0% from 2017 to 2023, increasing from 1.03 billion to 2.78 billion yuan [4][19] Home Appliance Business - The vacuum cleaner segment is solid, with a strong partnership with TTI, contributing to a revenue increase from 0.95 billion to 1.63 billion yuan from 2017 to 2023, with a CAGR of 9.5% [4][47] - The diversified small appliance segment has seen rapid growth, with revenue increasing from 0.07 billion to 0.82 billion yuan from 2019 to 2023, achieving a CAGR of 82.8% [4][62] - The company is expanding its product categories and customer base, with new clients like HOT and Shark Ninja contributing to growth [62] Automotive Motor Business - The automotive motor market is expected to grow, with the EPS motor market in China projected to exceed 5.71 billion yuan by 2025, with a CAGR of approximately 5.7% from 2022 to 2025 [4][14] - The company has secured 30 project designations, with expected revenues exceeding 2.3 billion yuan from 2024 to 2026 [4][14] Financial Forecast and Valuation - Revenue forecasts for 2024-2026 are 39.65 billion, 50.63 billion, and 62.46 billion yuan, respectively, with net profits of 4.08 billion, 5.06 billion, and 6.37 billion yuan [4][14] - The company’s dynamic PE ratios are projected to be 23.2, 18.7, and 14.9 for 2024, 2025, and 2026, respectively [4][14]