YUTO TECH.(SZ:002831) SINOLINK SECURITIES·2025-08-27 07:41Investment Rating - The report maintains a "Buy" rating for the company, with expected EPS for 2025-2027 at 1.86, 2.12, and 2.43 RMB respectively, corresponding to PE ratios of 13, 12, and 10 times [6]. Core Viewpoints - The company has shown steady revenue growth in H1 2025, with a revenue increase of 7.10% year-on-year, and a net profit increase of 11.42% [2]. - The recovery of downstream demand is expected to support stable revenue growth, particularly in eco-friendly packaging, which is anticipated to continue expanding [3]. - The company has implemented a new equity incentive plan, reflecting confidence in long-term development and a clear path for valuation uplift [5]. Performance Summary - In H1 2025, the company reported revenues of 7.876 billion RMB and a net profit of 554 million RMB, with a proposed cash dividend of 0.43 RMB per share, resulting in a payout ratio of 70.18% [2]. - The revenue from paper-based premium packaging, packaging supporting products, and eco-friendly paper-plastic products was 5.461 billion RMB, 1.297 billion RMB, and 584 million RMB respectively, with year-on-year growth rates of 5.39%, -6.70%, and 6.77% [3]. - The gross margin for H1 2025 was 22.77%, with a net margin of 6.80%, showing slight declines compared to the previous year [4]. Financial Projections - The company is projected to achieve revenues of 19.002 billion RMB in 2025, with a growth rate of 10.75% [11]. - The diluted EPS is expected to grow from 1.864 RMB in 2025 to 2.425 RMB in 2027, indicating a positive growth trajectory [11]. - The company’s return on equity (ROE) is projected to be 14.10% in 2025, with a P/E ratio of 13.24 [11].