YouFa(SH:601686) Minsheng Securities·2025-08-19 11:52Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [6][13]. Core Insights - The company reported a revenue of 24.888 billion yuan for H1 2025, a decrease of 5.81% year-on-year, while the net profit attributable to shareholders increased by 160.36% to 287 million yuan [1]. - The company is actively expanding its national and overseas presence, including acquiring a 70.96% stake in Jilin Huaming Pipe Industry and establishing a wholly-owned subsidiary for international operations [3]. - The company’s market share in the welded steel pipe sector continues to grow, solidifying its position as an industry leader [3]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 13.486 billion yuan, an 18.27% increase quarter-on-quarter but a 13.96% decrease year-on-year. The net profit for the same period was 154 million yuan, reflecting a 16.17% quarter-on-quarter increase and a 41.67% year-on-year increase [1][2]. - The sales volume of pipes reached 6.5477 million tons in H1 2025, marking a 4.18% increase year-on-year, with Q2 sales volume at approximately 3.6055 million tons, up 22.54% quarter-on-quarter [2]. Profitability Metrics - The gross profit margin for Q2 2025 was 3.18%, a decrease of 0.14 percentage points quarter-on-quarter but an increase of 0.37 percentage points year-on-year. The net profit per ton of steel was approximately 42.7 yuan [2]. - The company’s net profit forecast for 2025-2027 is projected to be 640 million yuan, 693 million yuan, and 754 million yuan, respectively, with corresponding PE ratios of 14, 13, and 12 times [4][5]. Strategic Initiatives - The company is focused on solidifying its market position through strategic acquisitions and partnerships, including collaboration with Hebei Haiqianwei Steel Pipe to enhance its product offerings [3]. - The implementation of stock option plans and employee shareholding initiatives aims to boost employee motivation and align their interests with the company's long-term growth [4].