Yiheda(SZ:301029) Jianghai Securities·2024-05-08 11:02Investment Rating - The report gives a "Buy" rating for the company, indicating a potential upside of over 15% compared to the benchmark index [100]. Core Viewpoints - The company is a leading player in the domestic FA (Factory Automation) components market, with a promising future ahead [23]. - The company has a stable and relatively concentrated shareholding structure, with a core team that possesses rich experience [24]. - The product matrix is diverse, and the company has established a high brand awareness [28]. - The company is expanding its production capacity through fundraising to enhance its core competitiveness [36]. - Short-term performance is under pressure due to soft demand in the end-user application market, but medium to long-term prospects remain positive [42]. - The company is gradually narrowing the revenue gap with competitors like Misumi (China) [49]. Summary by Sections Company Overview - The company specializes in the research, production, and sales of automation components, providing a one-stop supply for FA factory automation [23]. - As of the end of 2023, the company has developed a product system covering 226 major categories and 3,880 subcategories, with over 180 million SKUs [30]. Financial Performance - In 2023, the company achieved a revenue of 2.881 billion yuan, a year-on-year increase of 14.58%, and a net profit of 546 million yuan, up 7.73% year-on-year [69]. - The sales gross margin was 37.95%, down 1.13 percentage points year-on-year, while the net profit margin was 18.9%, down 1.21 percentage points [39]. Market Trends - The downstream industry is experiencing a recovery, with significant opportunities arising from large-scale equipment updates [78]. - The 3C industry shows signs of recovery, and the global market demand for new energy batteries and automobiles continues to grow [64][87]. - The photovoltaic industry is undergoing technological upgrades, contributing to stable growth in the business [89]. Competitive Landscape - The company faces competition from both large overseas enterprises like Misumi and smaller domestic firms [75]. - The company is focusing on expanding its FB (non-standard mechanical processing parts) business, which has a significant market potential [30]. Future Outlook - The company is expected to benefit from the recovery of the manufacturing sector and increased fixed asset investments, which will positively impact its performance [59]. - The FA factory automation components market is projected to reach approximately 149 billion yuan by 2028, with the company aiming for a market share of 4.84% [68].