Yongjin Technology (SH:603995) Minsheng Securities·2025-04-10 23:31Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price on April 10, 2025 [6]. Core Insights - The company achieved a revenue of 41.861 billion yuan in 2024, representing a year-on-year growth of 4.98%. The net profit attributable to shareholders was 0.805 billion yuan, an increase of 77.75% year-on-year [1]. - The stainless steel sales volume reached 3.3139 million tons in 2024, marking a year-on-year increase of 17.5%. The company expects to produce and sell 3.8 million tons of cold-rolled stainless steel in 2025, a growth of approximately 14.7% [2][3]. - The company is implementing a diversification strategy, expanding its new materials business, which includes projects in titanium alloys and layered composite materials [4]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 10.92 billion yuan, a quarter-on-quarter increase of 2.59% but a year-on-year decrease of 11.17%. The net profit for the same quarter was 0.221 billion yuan, with a year-on-year growth of 60.89% [1]. - The gross margin for Q4 2024 was 5.75%, showing a quarter-on-quarter increase of 0.14 percentage points and a year-on-year increase of 0.78 percentage points [2]. Future Outlook - The company is expected to see continued growth in stainless steel sales, driven by the full release of production capacity from its projects in Guangdong and Zhejiang, as well as the near-full production of its Vietnam project [3]. - New projects are progressing steadily, including a 400,000-ton stainless steel processing line in Jiangsu and a 260,000-ton precision stainless steel strip project in Vietnam, which is expected to begin trial production in the first half of 2025 [4]. Profit Forecast - The projected net profits for 2025, 2026, and 2027 are 0.850 billion yuan, 0.936 billion yuan, and 1.047 billion yuan, respectively, with corresponding PE ratios of 8, 7, and 6 [5][10].