YAWEI(SZ:002559) Huaxin Securities·2024-04-30 07:02Investment Rating - The report maintains a "Buy" rating for the company [2][27]. Core Insights - The company, Yawen Co., Ltd. (002559.SZ), reported steady growth in its metal machine tool business, achieving a revenue of 558 million yuan in Q1 2024, representing a year-on-year increase of 9.49%. However, the net profit attributable to the parent company decreased by 16.70% to 42 million yuan due to a reduction in government subsidies [2][3]. - The company is expected to benefit from high demand in the metal machine tool industry, which is projected to expand its market share [2]. - The company is focusing on the synergy between its new and existing businesses, which is anticipated to drive continuous performance improvement [2]. Financial Performance - For Q1 2024, the company reported a revenue of 558 million yuan, a 9.49% increase year-on-year, while the net profit attributable to the parent company was 42 million yuan, down 16.70% year-on-year [2]. - The company’s operating income for 2023 is forecasted to be 1.928 billion yuan, with expected growth rates of 5.4% in 2023, 9.6% in 2024, and continuing at around 9.8% through 2026 [4]. - The projected net profit for 2024 is 145 million yuan, reflecting a significant growth rate of 46.7% compared to the previous year [4]. Market Position - Yawen Co., Ltd. ranks among the top three in the domestic metal forming machine tool industry, focusing on the localization of high-end metal forming machine tool equipment [2]. - The company has successfully expanded its product offerings, including laser processing equipment and intelligent manufacturing solutions, which have shown significant sales growth [2]. Future Outlook - The company is expected to continue its growth trajectory with projected revenues of 2.113 billion yuan in 2024, 2.317 billion yuan in 2025, and 2.543 billion yuan in 2026, with corresponding EPS of 0.26 yuan, 0.37 yuan, and 0.52 yuan respectively [4][27]. - The current price-to-earnings (P/E) ratios are projected to be 36.2, 25.7, and 18.5 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation for potential investors [27].