Yunlu Materials(SH:688190) ZHESHANG SECURITIES·2025-03-30 13:43Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company is experiencing steady growth in its main business of amorphous products, with revenue of 1.42 billion yuan in 2024, accounting for 74.7% of total revenue, driven by domestic grid equipment upgrades and overseas market expansion [2] - The nano-crystal product segment generated revenue of 305 million yuan, representing a year-on-year growth of 34.71%, although it faced margin pressure due to rising raw material costs [2] - Future growth potential is highlighted in emerging fields such as AI and smart home applications, which are expected to drive demand for high-frequency soft magnetic materials [3] Business Performance Summary - The company is positioned as a global leader in amorphous materials, benefiting from ongoing investments in the power grid and the high demand in the renewable energy sector [4] - Revenue is projected to grow from 1.9 billion yuan in 2024 to 2.635 billion yuan in 2027, with a compound annual growth rate of 17.45% [6] - Net profit is expected to increase from 361 million yuan in 2024 to 518 million yuan in 2027, reflecting a growth rate of 12.75% [6] - Earnings per share (EPS) are forecasted to rise from 3.01 yuan in 2024 to 4.31 yuan in 2027 [6] Financial Highlights - The company reported a gross margin of 30.38% in 2024, maintaining stability in profitability [11] - Research and development expenses increased by 19.17% to 114 million yuan, indicating a commitment to innovation [11] - The company has consistently maintained a cash dividend payout ratio exceeding 30%, demonstrating strong shareholder returns [11]