YUTO TECH.(SZ:002831) Changjiang Securities·2026-02-27 10:28Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Insights - The company plans to acquire 60% equity in the Hungarian paper packaging company Gelbert for €6.54 million, which corresponds to a valuation of 6.4 times the audited EBITDA for 2024 [2][8]. - The acquisition is structured with a retention payment mechanism linked to the financial performance of Gelbert in 2026-2027, ensuring that if the company does not meet specified revenue and EBITDA targets, the parent company can withhold certain payments [2][8]. - This acquisition marks a new phase in the company's global expansion strategy, following its initial focus on Southeast Asia, and aims to enhance its presence in the European market [8]. Summary by Relevant Sections Acquisition Details - The acquiring entity is the wholly-owned subsidiary Hong Kong Yutong [2]. - The acquisition price for the 60% stake is €6.54 million, equivalent to approximately ¥53.48 million based on the exchange rate as of February 24 [8]. - The retention payment of €820,000 will be paid in two installments, contingent on meeting financial performance criteria [2][8]. Financial Performance of Gelbert - Gelbert is a mature printing and packaging enterprise in Hungary, with projected revenues of ¥63.13 million and an EBITDA of ¥13.94 million for 2024, reflecting an EBITDA margin of 22% [8]. - For the first five months of 2025, Gelbert's revenue is projected at ¥24.19 million with an EBITDA of ¥4.36 million, resulting in an EBITDA margin of 18% [8]. Strategic Implications - The acquisition is expected to facilitate deeper penetration into local markets for consumer goods and personal care products, leveraging Yutong's advanced manufacturing capabilities [8]. - The company has established a significant global footprint with over 40 production bases and service centers across 10 countries, and this acquisition will further enhance its operational network in Europe [8]. - The company anticipates that overseas revenue will continue to grow, with higher profit margins compared to domestic operations, thereby improving its overall profitability structure [8]. Financial Projections - The company forecasts net profits of ¥1.7 billion, ¥1.9 billion, and ¥2.2 billion for 2025, 2026, and 2027 respectively, with a corresponding PE ratio of 17, 15, and 13 times [8].