Yongjin Technology (SH:603995) Orient Securities·2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 20.80 yuan based on a 13X PE for 2024 [4][36]. Core Insights - The company is progressing steadily with its projects in Vietnam and Jiangsu, while the Gansu project is being delayed. The "Annual Processing of 220,000 Tons of Precision Stainless Steel Strip Project" in Gansu is expected to be completed by March 31, 2025 [1]. - The Vietnamese subsidiary has shown strong profitability, achieving revenue of 202 million and a net profit of 117 million as of September 30, 2023, with a net profit margin of 5.8%, surpassing the company's overall net profit margin of 4.2% for the first three quarters [1]. - The company plans to invest $125 million to establish a new capacity of 260,000 tons in Vietnam, with the first phase already under construction and expected to commence production in Q2 2024 [1]. - The demand for cold-rolled stainless steel is anticipated to recover due to large-scale equipment upgrades and consumer replacement policies, potentially increasing steel consumption by approximately 5 million tons annually [1]. - The new materials business is expected to become a new profit growth point, with trial production of 15,000 tons of titanium alloy and 75,000 tons of battery casing expected to start in Q1 2024 [1]. Financial Summary - The company’s revenue is projected to grow from 40,425 million in 2023 to 57,146 million in 2025, with a compound annual growth rate (CAGR) of 15.3% [17]. - The net profit attributable to the parent company is expected to decline from 451 million in 2023 to 740 million in 2025, reflecting a recovery in profitability with a growth rate of 25.9% in 2025 [17]. - The earnings per share (EPS) are forecasted to be 1.23 yuan in 2023, increasing to 2.02 yuan by 2025 [36].