YOFC(SH:601869) EBSCN·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6-12 months [6]. Core Views - The optical fiber and cable industry is expected to continue its growth trajectory, supported by the development of network infrastructure and the integration of digital economy with traditional sectors [2]. - The company is projected to benefit from the rapid development of the optical fiber and cable, as well as optical devices and modules sectors, leading to an upward revision of net profit forecasts for 2024-2026 [2][3]. Summary by Sections Industry Overview - The optical fiber and cable industry is experiencing steady growth, with China's total cable length reaching 64,320 million kilometers by the end of 2023, a net increase of 4.74 million kilometers, representing an approximate 8.0% year-on-year growth [2]. - The market for optical devices and modules is expanding, with a forecasted compound annual growth rate of 200% for 50G PON ports from 2024 to 2028 [2]. Company Performance - In 2023, the company reported a revenue of 13.353 billion yuan, a decrease of 3.45% year-on-year, while net profit reached 1.297 billion yuan, an increase of 11.18% [3]. - The company is focusing on efficiency improvements and product innovation across its business segments, including preform and fiber, cable, and optical devices [2]. Financial Projections - The net profit forecasts for 2024 and 2025 have been revised to 1.345 billion yuan and 1.416 billion yuan, respectively, reflecting increases of 4.34% and 5.36% from previous estimates [2]. - The projected net profit for 2026 is set at 1.491 billion yuan, with corresponding price-to-earnings ratios of 16, 15, and 14 for the respective years [2].