UE(SH:603600) Guotai Junan Securities·2024-04-26 04:31Investment Rating - The report maintains a "Buy" rating for Yongyi Co., Ltd. (603600) with a target price of 14.90 CNY, up from the previous target of 14.82 CNY [22][25]. Core Insights - The company's performance in 2023 slightly exceeded expectations, while Q1 2024 profits were slightly below expectations. The earnings forecast for 2024-2026 has been adjusted, with expected EPS of 1.02, 1.26, and 1.53 CNY respectively [22]. - Revenue growth is anticipated to be strong, with a projected increase of approximately 20% in Q4 2023 and Q1 2024, driven by the recovery of export customers and domestic brand initiatives [22]. - The gross profit margin and net profit margin for Q1 2024 are expected to be 22.1% and 5.2%, respectively, with a slight decline in net profit margin attributed to increased marketing expenses [22]. Financial Summary - Revenue for 2023 is reported at 3,538 million CNY, down 13% from 2022, with a projected recovery to 4,423 million CNY in 2024, representing a 25% increase [16]. - Operating profit (EBIT) for 2023 is 213 million CNY, with expectations of growth to 394 million CNY in 2024 [16]. - Net profit attributable to shareholders for 2023 is 298 million CNY, with a forecasted increase to 339 million CNY in 2024 [16]. Profitability and Valuation Metrics - The operating profit margin is expected to improve from 6.0% in 2023 to 8.9% in 2024 [16]. - The return on equity (ROE) is projected to rise from 13.8% in 2023 to 14.3% in 2024 [16]. - The price-to-earnings (PE) ratio for 2024 is estimated at 14.7x, reflecting the company's valuation relative to industry standards [22]. Market Performance - The stock has shown a 35% absolute increase over the past 12 months, with a relative performance of 41% compared to the index [19]. - The stock price range over the past 52 weeks is between 8.92 and 13.00 CNY, with a current market capitalization of 4,028 million CNY [17][22].