YINGHE TECHNOLOGY(300457) 天风证券·2025-03-04 13:25Investment Rating - The report assigns a "Buy" rating for the company with a target price of 47.40 CNY based on a 30X PE for 2025, corresponding to a market value of 307.89 billion CNY [5]. Core Insights - The company is a leading player in the lithium battery equipment sector and is expanding into the electronic cigarette market, which is expected to drive growth [1][4]. - In 2023, the company achieved a revenue of 9.75 billion CNY, a year-on-year increase of 8.09%, and a net profit attributable to shareholders of 554 million CNY, up 13.62% year-on-year [1][19]. - The electronic cigarette business has shown remarkable performance, contributing 3.34 billion CNY to total revenue, accounting for 34% of overall sales [1][19]. Summary by Sections 1. Lithium Battery Equipment Leadership - The company has established itself as a leader in lithium battery equipment, focusing on key processes such as coating, rolling, and assembly, with significant technological advancements [1][13]. - The company has successfully developed high-speed stacking technology for solid-state batteries, enhancing its competitive edge in the market [2][32]. - R&D investment reached 722 million CNY in 2023, a 49.46% increase, reflecting the company's commitment to innovation and product development [2][28]. 2. Solid-State Battery Market Potential - The company is well-positioned to benefit from the growing demand for solid-state batteries, with a focus on improving supply chain capabilities and international expansion [2][32]. - The global sales of electric vehicles are projected to exceed 17.4 million by 2030, indicating a robust market for lithium battery equipment [2][32]. - The company reported a significant increase in overseas revenue, reaching 3.42 billion CNY in 2023, a year-on-year growth of 562.53% [2][4]. 3. Electronic Cigarette Business Growth - The electronic cigarette segment has emerged as a second growth curve for the company, with successful product launches in the U.S. market [3][4]. - The company has achieved FDA approval for two products, enhancing its competitive position in the U.S. market [3][4]. - The electronic cigarette business generated 3.34 billion CNY in revenue in 2023, indicating strong market demand and growth potential [1][19]. 4. Financial Projections and Valuation - The company is expected to see net profits of 701 million CNY, 1.03 billion CNY, and 1.38 billion CNY for 2024, 2025, and 2026, respectively [4][19]. - The projected revenue for 2024 is estimated at 9.21 billion CNY, reflecting a slight decline due to market conditions, but growth is anticipated in subsequent years [4][19]. - The company maintains a healthy gross margin, with electronic cigarette products achieving a gross margin of nearly 50% in 2023 [24][26].