Yiheda(SZ:301029) HTSC·2025-04-29 07:15Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 31.08 [8][9]. Core Insights - The company reported a revenue of RMB 2.504 billion for 2024, a year-on-year decrease of 13.08%, and a net profit attributable to the parent company of RMB 404 million, down 25.87%, primarily due to a decline in downstream demand in the lithium battery and photovoltaic sectors. However, in Q1 2025, the company achieved a revenue of RMB 620 million, reflecting a year-on-year increase of 14.75%, and a net profit of RMB 122 million, up 26.48%, driven by strong growth in the 3C sector [1][2]. - The company aims to build a new strategic framework focusing on "extreme product strength," which connects customer needs with corporate capabilities, emphasizing aspects like cost-effectiveness, delivery speed, and customization [4]. Revenue and Profitability - The revenue structure for Q1 2025 is similar to that of 2024, with the lithium battery sector showing a year-on-year growth rate of 16% and the automotive sector experiencing a significant increase of 56% [2]. - The gross margin for 2024 was 35.26%, a decrease of 2.69 percentage points year-on-year, while the net margin was 16.15%, down 2.78 percentage points, mainly due to poor market conditions in the lithium battery and photovoltaic sectors. In Q1 2025, the gross margin improved significantly to 38.1%, an increase of 3.07 percentage points year-on-year [3]. Financial Forecast and Valuation - The forecast for net profit attributable to the parent company for 2025-2027 is RMB 471 million, RMB 617 million, and RMB 775 million, respectively. The comparable company PE for 2025 is projected at 35x, while the company is given a valuation of 42x, with a target price of RMB 31.08 [5][7].