Yongjin Technology (SH:603995) INDUSTRIAL SECURITIES·2024-04-19 08:31Investment Rating - The report maintains a "Hold" rating for the company, indicating a cautious outlook due to fluctuating processing fees impacting profitability [6][11]. Core Insights - The company is expanding its production capacity in stainless steel and titanium alloy materials, with significant projects expected to reach trial production by mid-2024 [6][15]. - The financial forecast for the company shows a projected net profit of 587 million, 712 million, and 830 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.60, 1.94, and 2.26 yuan [6][8]. - The company experienced a slight decline in net profit in 2023, attributed to lower product prices and processing fees, but is expected to benefit from increased sales volume in the upcoming quarters [11][12]. Financial Summary - The company reported a revenue of 39.874 billion yuan in 2023, with a year-on-year growth of 0.8% [8][11]. - The projected revenue for 2024 is 46.234 billion yuan, reflecting a growth rate of 16.0% [8]. - The gross profit margin is expected to stabilize around 4.5% for the next few years, with a return on equity (ROE) projected to increase from 8.7% in 2023 to 12.4% by 2026 [8][10].