YINLUN(SZ:002126) Orient Securities·2026-02-12 00:25Investment Rating - The report maintains a "Buy" rating for the company with a target price of 55.87 CNY, based on a comparable company PE average valuation of 37 times for 2026 [3][6]. Core Insights - The company is expected to benefit from the long-term growth elasticity brought by gas generator-related supporting products, particularly in the context of increasing demand for gas turbines and generators due to the expansion of AI data centers in the U.S. [2][10]. - The company is positioned to enter the exhaust treatment product supply chain for gas generators, which is anticipated to contribute significantly to its profitability in the medium to long term [10]. Financial Forecasts - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.14 CNY, 1.51 CNY, and 1.93 CNY respectively [3]. - Revenue is expected to grow from 11,018 million CNY in 2023 to 21,502 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 18.5% [5][11]. - Operating profit is forecasted to increase from 816 million CNY in 2023 to 2,107 million CNY in 2027, with a notable growth rate of 67.7% in 2023 [5][11]. - The net profit attributable to the parent company is projected to rise from 612 million CNY in 2023 to 1,631 million CNY in 2027, indicating a strong growth trajectory [5][11]. Key Financial Ratios - The gross margin is expected to stabilize around 20.2% to 21.7% from 2025 to 2027, while the net margin is projected to improve from 6.3% in 2025 to 7.6% in 2027 [5][11]. - The return on equity (ROE) is anticipated to increase from 14.1% in 2025 to 17.7% in 2027, reflecting improved profitability and efficiency [5][11].