YDC(SH:605555) KAIYUAN SECURITIES·2024-04-27 07:31Investment Rating - The investment rating for the company is maintained as "Buy" [6]. Core Insights - The company reported Q1 2024 earnings that exceeded expectations, driven by growth in home appliance and automotive motor segments. Revenue for 2023 was 2.775 billion yuan, up 43.2% year-on-year, with a net profit of 322 million yuan, up 7.9% [8][28]. - For Q1 2024, revenue reached 825 million yuan, an increase of 46.1%, and net profit was 85 million yuan, up 102.3% [28]. - The company is expanding its customer base and product categories in the home appliance sector, while the automotive motor segment has a strong order backlog [8][28]. Summary by Sections Performance - In 2023, the company achieved a revenue of 2.775 billion yuan (+43.2% year-on-year) and a net profit of 322 million yuan (+7.9%) [28]. - Q1 2024 results showed revenue of 825 million yuan (+46.1%) and net profit of 85 million yuan (+102.3%) [28]. - The home appliance segment generated 2.481 billion yuan in revenue (+38.98%), while the automotive segment reached 202 million yuan (+171.69%) [28]. Profitability - The gross margin for 2023 was 19.11% (+1.33 percentage points), while Q1 2024 saw a gross margin of 17.43% (-0.67 percentage points) [37]. - The net profit margin for 2023 was 11.61% (-3.80 percentage points), improving to 10.34% (+2.87 percentage points) in Q1 2024 [45][57]. Operational Capability - The company has a strong cash flow and improved turnover capabilities, with significant growth in domestic sales, which increased by 203 times year-on-year [33][47]. - The company has ongoing projects to enhance production capacity, including a new factory in Vietnam and expansions in domestic facilities [35]. Earnings Forecast and Investment Recommendations - The company has slightly adjusted its profit forecasts for 2024-2026, expecting net profits of 410 million yuan, 540 million yuan, and 670 million yuan respectively, with corresponding EPS of 1.10, 1.44, and 1.81 yuan [8][59].