YUTO TECH.(SZ:002831) Changjiang Securities·2024-06-10 05:31Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - Since the second quarter, the demand for consumer electronics has been improving, leading to increased revenue and profit margins for the company [2][6]. - The domestic smartphone market saw a significant increase in shipments, with a total of 22.668 million units in April 2024, representing a year-on-year growth of 25.5% [5][6]. - The company's profit margins have been steadily improving, closely linked to the demand in the consumer electronics sector, with a notable recovery from the lows experienced in 2021 [6][7]. Summary by Sections Market Performance - The report highlights a recovery in the smartphone market, with domestic shipments increasing by 25.5% year-on-year and a global increase of 7.8% in Q1 2024 [5][6]. - Major brands like Xiaomi and Transsion have shown significant growth in shipments, indicating a positive trend for the industry [5][6]. Financial Performance - The company's revenue growth rates from Q1 2023 to Q1 2024 were -14%, -11%, -7%, +2%, and +19%, indicating a clear upward trend [6]. - The net profit margin has improved since 2021, with a recovery attributed to reduced pressure from customer pricing and the growth of higher-margin new businesses [6][7]. Future Outlook - The company is expected to strengthen its position as a leader in paper packaging, with ongoing efforts to enhance quality and efficiency internally while expanding market share externally [7]. - The company has committed to a dividend payout ratio of no less than 60% for the years 2023-2025, with a 2023 payout ratio of 60.3% [7]. - Forecasted net profits for 2024-2026 are projected at 1.7 billion, 2.01 billion, and 2.35 billion yuan, respectively, with corresponding P/E ratios of 14, 12, and 10 [7].