YOFC(SH:601869) Haitong Securities·2024-04-24 02:32Investment Rating - The investment rating for the company is "Outperform the Market" [2][6]. Core Views - The company reported a revenue of 13.353 billion yuan in 2023, a decrease of 3.45% year-on-year, while the net profit attributable to shareholders was 1.297 billion yuan, an increase of 11.18% year-on-year [5][7]. - Short-term demand for optical fibers and cables is under pressure, but gross margins have improved [5][8]. - The company has acquired RFS Germany and Suzhou, enhancing its international cable market presence [6]. - The company is leading in the development of new fiber technologies, such as hollow-core fibers, which have significant commercial potential [6][8]. Financial Summary - Revenue and profit forecasts for 2024-2026 are as follows: - 2024: Revenue of 14.323 billion yuan, net profit of 1.329 billion yuan, EPS of 1.75 yuan - 2025: Revenue of 15.261 billion yuan, net profit of 1.411 billion yuan, EPS of 1.86 yuan - 2026: Revenue of 16.241 billion yuan, net profit of 1.500 billion yuan, EPS of 1.98 yuan [7][10]. - The company’s gross margin is projected to be 24.2% in 2024, 23.7% in 2025, and 23.3% in 2026 [10][12]. Business Segments - Revenue from the optical fiber preform and fiber segment in 2023 was 3.173 billion yuan, with a gross margin of 53.15% [10]. - The cable segment generated 5.358 billion yuan in revenue with a gross margin of 17.80% [10]. - The optical devices and modules segment saw revenue of 1.470 billion yuan, with a gross margin of 14.09% [10]. - Other products and services generated 3.104 billion yuan in revenue, with a gross margin of 13.27% [10]. Market Comparison - The company is compared with peers in the industry, with an average P/E ratio of 26 for 2022 and projected P/E ratios of 31 for 2023 and 23 for 2024 [11].