Wenzhou Yihua (SZ:002897)2024-05-28 08:07Investment Rating - The report assigns a rating of "Accumulate" for the company [3]. Core Insights - The company benefited from the recovery of orders from American clients and growth in European orders, leading to impressive performance in Q1 2024 [2][14]. - In 2023, the company achieved a revenue of 5.058 billion, a year-on-year increase of 0.96%, with a gross margin of 17.6%, up 0.12% year-on-year [2]. - The decline in net profit attributable to the parent company was 49.04%, amounting to 122 million, primarily due to delays in orders and ongoing construction of the U.S. base [2][6]. - The company has established long-term partnerships with major clients in the photovoltaic and connector sectors, including NEXTracker, Huawei, and Foxconn [5][6]. Financial Summary - Revenue projections for 2024-2026 are 7.388 billion, 8.908 billion, and 10.764 billion respectively, with growth rates of 46.06%, 20.57%, and 20.83% [7]. - The net profit attributable to the parent company is expected to reach 283 million, 379 million, and 496 million for the same period, with growth rates of 131.65%, 33.85%, and 30.90% respectively [7]. - The company’s EBITDA for 2024-2026 is projected at 627 million, 755 million, and 915 million respectively [7]. - The P/E ratio is forecasted to decrease from 51.61 in 2023 to 25.51 in 2024, and further down to 14.56 by 2026 [7].