YLT(SH:600197) SINOLINK SECURITIES·2025-04-29 01:23Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of 5% to 15% over the next 6 to 12 months [12]. Core Views - The company reported a revenue of 2.2 billion RMB in 2024, a slight decrease of 1.3% year-on-year, and a net profit of 290 million RMB, down 15.9% year-on-year. For Q1 2025, revenue was 800 million RMB, down 4.3% year-on-year, with a net profit of 140 million RMB, down 9.3% year-on-year, indicating performance in line with expectations despite external pressures [2][3]. - The revenue structure shows a significant improvement in product mix, with high-end products achieving a revenue of 1.53 billion RMB in 2024, up 4.3% year-on-year, while mid-range and low-end products saw declines of 8.2% and 20.5% respectively. In Q1 2025, high-end products continued to grow, while mid-range and low-end products faced substantial declines [3]. - The company aims for a revenue target of 2.3 billion RMB in 2025, representing a 4% increase, and a net profit target of 405 million RMB, remaining flat compared to 2024 [4]. Summary by Sections Financial Performance - In 2024, the company achieved a gross profit margin of 13.0%, a decrease of 2.3 percentage points, while the gross margin increased by 4.1 percentage points. The sales expense ratio rose by 2.5 percentage points [4]. - For Q1 2025, the net profit margin was 18.1%, down 1.0 percentage points year-on-year, with a gross margin decrease of 3.1 percentage points [4]. Revenue Breakdown - Product revenue in 2024 was 1.53 billion RMB for high-end, 510 million RMB for mid-range, and 130 million RMB for low-end products, with respective year-on-year changes of +4.3%, -8.2%, and -20.5% [3]. - In Q1 2025, high-end products generated 620 million RMB, mid-range 130 million RMB, and low-end 30 million RMB, with year-on-year changes of +8.8%, -30.7%, and -41.0% respectively [3]. Future Projections - The company expects revenue growth of 4.6% in 2025, 6.1% in 2026, and 10.0% in 2027, with net profit growth of 10.6%, 13.9%, and 18.5% respectively [5]. - The earnings per share (EPS) are projected to be 0.67 RMB in 2025, 0.76 RMB in 2026, and 0.90 RMB in 2027, with corresponding price-to-earnings (P/E) ratios of 21.8, 19.1, and 16.2 [5].