UE(603600) ZHESHANG SECURITIES·2025-03-19 05:12Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - Yongyi Co., Ltd. is a leading manufacturer in the office chair export sector, showcasing significant growth potential driven by multiple factors [1][4] - The company has established a strong presence in the office chair market, with a focus on both export and domestic sales, indicating a robust growth trajectory [2][3] Summary by Sections Office Chair Export Leadership - Yongyi Co., Ltd. has been deeply involved in the office chair sector since its establishment in 2001, becoming the first listed company in China's chair industry [14] - The company reported a revenue of 3.54 billion yuan in 2023, a year-on-year decrease of 12.8%, with a net profit of 298 million yuan, also down 11% [15][17] Global and Domestic Market Trends - The global office chair market was valued at 15 billion USD in 2023, with China being the largest producer [2][19] - The domestic market for office chairs is expected to grow significantly, with a projected market size of 37.6 billion yuan by 2026 [44] Growth Drivers - The company is set to benefit from the introduction of new clients and products, with a focus on expanding its customer base in 2024 and beyond [3][48] - Yongyi's production capacity is expanding, particularly in Vietnam and Romania, which will enhance its competitive edge in the global market [51] Financial Forecast and Valuation - The company is expected to achieve revenues of 4.73 billion yuan in 2024, representing a year-on-year growth of 34%, with net profits projected to reach 327 million yuan [4][11] - The price-to-earnings ratio for 2025-2026 is estimated at 10x and 8x, respectively, indicating a favorable valuation [4][11]