YINGHE TECHNOLOGY(300457) 天风证券·2025-03-04 19:01Investment 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 generated 3.34 billion CNY in revenue in 2023, accounting for 34% of total revenue, showcasing its significant contribution to overall growth [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, cutting, and assembly, with a strong emphasis on innovation and R&D [1][13]. - The company’s R&D expenses reached 722 million CNY in 2023, a 49.46% increase, reflecting its commitment to technological advancement and product quality [2][28]. 2. Solid-State Battery Market Potential - The company is well-positioned to capitalize on the solid-state battery market, having developed advanced stacking technology essential for this new battery type [2][32]. - The global demand for electric vehicles is increasing, with European sales reaching 2.95 million units in 2023, a 13.46% year-on-year growth, which is expected to drive the demand for lithium battery equipment [2][32]. 3. Electronic Cigarette Business Growth - The electronic cigarette segment, particularly through the SKE brand, has become a significant growth driver, with successful FDA approvals enhancing market competitiveness [3][19]. - The company is expanding its presence in the U.S. market, with exports expected to reach 1.814 billion USD in the first half of 2024, a 21.92% increase year-on-year [3][19]. 4. Financial Projections - The company forecasts net profits of 701 million CNY, 1.026 billion CNY, and 1.382 billion CNY for 2024, 2025, and 2026 respectively, indicating strong growth potential [4][19]. - The revenue from lithium battery equipment is projected to remain robust, supported by increasing demand from the electric vehicle sector [4][19].