YUTO TECH.(SZ:002831)2024-05-06 05:02Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [6]. Core Insights - The company reported 2023 earnings that were in line with expectations, with total revenue of 15.22 billion yuan, a year-on-year decrease of 7.0%, and a net profit attributable to shareholders of 1.44 billion yuan, down 3.3% year-on-year. However, Q1 2024 results exceeded expectations, with revenue of 3.48 billion yuan, up 19.4% year-on-year, and a net profit of 219 million yuan, up 20.6% year-on-year [6][7]. - The company is positioned for growth, with its main business recovering alongside terminal demand, and it is expanding into new fields such as artificial intelligence, toys, and food packaging. The global production base enhances service quality [6]. - The company has increased its dividend payout ratio to 60.3% in 2023, with plans to maintain a dividend ratio of no less than 60% for 2024-2025, enhancing its investment appeal [6]. Financial Performance Summary - 2023 Financials: Total revenue was 15.22 billion yuan, with a net profit of 1.44 billion yuan. The Q4 2023 revenue was 4.42 billion yuan, showing a slight recovery [6][7]. - 2024 Projections: Expected revenue for 2024 is 17.17 billion yuan, with a net profit forecast of 1.63 billion yuan, reflecting a year-on-year growth of 12.8% and 13.5% respectively [7][9]. - Earnings Per Share: Projected EPS for 2024 is 1.75 yuan, increasing to 2.28 yuan by 2026 [7][9]. Business Segments Analysis - Consumer Electronics: Revenue growth is expected to recover due to strong demand from major clients like Huawei and Xiaomi, with a focus on expanding into new customer segments [6]. - Eco-friendly Packaging: Revenue growth is rebounding, supported by the implementation of "plastic bans" and the development of new eco-friendly materials [6]. - Tobacco and Alcohol Packaging: The company is capitalizing on the increasing marketization of the bidding process, which is expected to provide new growth opportunities [6]. Valuation Metrics - The current market capitalization corresponds to a price-to-earnings (PE) ratio of 15 for 2024, which is attractive compared to the average PE of 21 for the top 10 comparable companies in the paper packaging industry [6][7].