Yangjie Technology(SZ:300373) SINOLINK SECURITIES·2024-03-20 16:00Investment Rating - The report initiates coverage with a "Buy" rating for the company, assigning a target price of 54.32 RMB per share based on a 28x PE for 2024 [2][3]. Core Insights - The company has demonstrated strong revenue growth with a CAGR of 39% from 2019 to 2022 and a net profit CAGR of 68% during the same period. However, in the first three quarters of 2023, revenue declined by 9% year-over-year, and net profit fell by 33% year-over-year [1]. - The company is positioned as a leader in the diode market, with a global market share in diodes and a focus on high-end product transformation, including automotive modules and SiC products [1]. - The dual-brand strategy of YJ and MCC aims to enhance domestic and international market penetration, with significant investments in Southeast Asia to establish production lines and expand overseas channels [1]. Summary by Sections Company Overview - The company operates in the semiconductor industry, focusing on diodes, MOSFETs, IGBTs, and SiC devices, utilizing both IDM and Fabless business models [1]. - The company has a flexible production capacity strategy, enhancing its ability to respond to market demands while maintaining high utilization rates of its existing production lines [1]. Financial Projections - Revenue projections for 2023 to 2025 are 55.97 billion RMB, 67.84 billion RMB, and 80.08 billion RMB, respectively, with growth rates of 3.57%, 21.23%, and 18.03% [2]. - Net profit forecasts for the same period are 9.16 billion RMB, 10.49 billion RMB, and 13.68 billion RMB, with a projected EPS of 1.69 RMB, 1.94 RMB, and 2.53 RMB [2]. Market Position and Strategy - The company is expected to benefit from the exit of foreign competitors from the mid-to-low-end market, allowing it to capture additional market share [1]. - The company has established a strong presence in the photovoltaic diode market, with leading global market share and partnerships with major solar component manufacturers [1][19]. Investment and Growth Strategy - The company raised approximately 215 million USD through GDR issuance to fund its expansion in Southeast Asia and enhance its production capabilities [1]. - The report highlights the company's commitment to high-end product development and its strategic focus on automotive and renewable energy sectors, which are expected to drive future growth [1][26].