Yunlu Materials(SH:688190) China Post Securities·2024-03-30 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within six months [20][23]. Core Insights - The company has shown strong performance with significant revenue and profit growth, driven by the increasing demand for amorphous materials and favorable exchange rate fluctuations [11][32]. - The company is the largest supplier of amorphous alloy strips in the industry, with a design capacity of 90,000 tons per year, and is actively expanding into international markets [39][22]. - The demand for amorphous strips is supported by national policies and the growth of emerging industries, particularly in power distribution, photovoltaic, and data center sectors [23][12]. Financial Performance Summary - Revenue is projected to grow from 1,447 million yuan in 2022 to 1,772 million yuan in 2023, representing a year-on-year increase of 22.43% [5][11]. - Net profit is expected to rise from 226.71 million yuan in 2022 to 332.40 million yuan in 2023, reflecting a growth rate of 46.62% [5][11]. - Earnings per share (EPS) are forecasted to increase from 1.89 yuan in 2022 to 2.77 yuan in 2023 [5][11]. Market Position and Strategy - The company is transitioning from a material supplier to a comprehensive solution provider across the entire industry chain, enhancing its market position [33][39]. - The company has successfully promoted amorphous solutions in various projects, including photovoltaic applications and urban infrastructure [33][12].