YLT(SH:600197) SINOLINK SECURITIES·2025-04-29 01:45Investment 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 [5][13]. Core Views - The company reported a revenue of 2.2 billion RMB in 2024, a 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, a decline of 4.3%, with a net profit of 140 million RMB, down 9.3% year-on-year. The performance aligns with expectations despite external pressures [2][5]. - 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 generated 620 million RMB, an increase of 8.8% year-on-year [3][4]. - 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][5]. Revenue Structure Summary - Product Segment: In 2024, high-end products generated 1.53 billion RMB, mid-range products 510 million RMB, and low-end products 130 million RMB. For Q1 2025, high-end products saw revenue of 620 million RMB, while mid-range and low-end products dropped significantly [3]. - Regional Performance: In 2024, revenue from within the region was 1.6 billion RMB, down 5.8%, while revenue from outside the region increased by 16.7% to 570 million RMB. In Q1 2025, regional revenue was 700 million RMB, up 3.5%, while outside revenue fell by 37.9% to 90 million RMB [3]. - Channel Performance: Direct sales in 2024 reached 490 million RMB, up 90.9%, while online and wholesale channels saw declines. In Q1 2025, direct sales were 200 million RMB, an increase of 69.9% [3]. Financial Metrics Summary - The company's net profit margin decreased by 2.3 percentage points to 13.0% in 2024, with a gross margin increase of 4.1 percentage points. For Q1 2025, the net profit margin was 18.1%, down 1.0 percentage point year-on-year [4]. - The cash dividend payout ratio significantly increased to 74.5% in 2024, indicating a strong commitment to returning value to shareholders [4]. - The forecast for net profit in 2025 is 320 million RMB, with an expected growth of 10.6% in 2026 and 13.9% in 2027 [5][10].