YUTO TECH.(SZ:002831) HTSC·2025-04-29 06:41Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 29.28 RMB [7][8]. Core Insights - The company achieved a revenue of 17.157 billion RMB in 2024, representing a year-on-year growth of 12.7%. However, the net profit attributable to the parent company was 1.409 billion RMB, down 2.1% year-on-year, which was below previous expectations due to strategic disposals and employee stock plan costs [1][4]. - The company's revenue growth is driven by the recovery in demand from downstream electronic consumer sectors, particularly in the premium paper packaging segment [2][3]. - The company has a strong focus on investor returns, with a dividend payout ratio of 60.22% in 2024, highlighting its commitment to high dividends [3]. Revenue and Profit Analysis - In 2024, the revenue from premium paper packaging was 12.42 billion RMB, up 12.5% year-on-year, while revenue from packaging supporting products decreased by 4.4% to 2.5 billion RMB. The environmental paper-plastic products saw a significant increase of 19.5% to 1.27 billion RMB [2]. - Domestic revenue reached 12.06 billion RMB, growing by 4.9%, while international revenue surged by 36.8% to 5.1 billion RMB, benefiting from the establishment of production facilities in the Philippines and Mexico [2]. Margin and Cost Structure - The gross margin for 2024 was 24.8%, a decrease of 1.43 percentage points year-on-year, primarily due to changes in business structure. The overall expense ratio decreased by 0.43 percentage points to 13.44% [3]. - The financial expense ratio improved, decreasing by 0.37 percentage points to -0.19%, attributed to lower loan interest rates and increased foreign exchange gains [3]. Profit Forecast and Valuation - The profit forecast for 2025-2027 indicates net profits of 1.707 billion RMB, 1.957 billion RMB, and 2.222 billion RMB respectively, with corresponding EPS of 1.83 RMB, 2.10 RMB, and 2.39 RMB [4][6]. - The target price is set at 29.28 RMB based on a 16x PE ratio for 2025, reflecting the company's ongoing globalization and intelligent manufacturing strategies [4].