YOFC(SH:601869) Minsheng Securities·2024-05-04 15:30Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company's Q1 2024 performance was impacted by a decline in demand for optical fiber cables, with revenue of 2.387 billion yuan, a year-on-year decrease of 25.29%, and a net profit attributable to shareholders of 57.92 million yuan, down 75.97% year-on-year [1]. - Despite the decline in demand, the gross profit margin improved to 26.80%, an increase of 1.35 percentage points year-on-year and 6.75 percentage points quarter-on-quarter, attributed to cost control and product upgrades [1]. - The company is expanding its optical communication business and optimizing its product structure, maintaining its industry-leading position [1]. - The company achieved overseas revenue of 4.34 billion yuan in 2023, accounting for 32.5% of total revenue, and is expected to benefit from a recovery in global optical cable demand [1]. Financial Forecasts - The company is projected to achieve revenues of 14.94 billion yuan, 16.53 billion yuan, and 18.26 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 1.372 billion yuan, 1.555 billion yuan, and 1.745 billion yuan [2][6]. - The expected PE ratios for 2024, 2025, and 2026 are 16, 14, and 13 respectively [2][6]. - The report indicates a net profit growth rate of 5.8% for 2024, followed by 13.3% and 12.2% for 2025 and 2026 respectively [6].