Core Viewpoint - Yidelong, a global EMS provider, is experiencing stable revenue growth and is expected to benefit from industry trends and strategic transformations [6] Group 1: Company Overview - Yidelong was established on May 31, 2001, and went public on June 22, 2017, on the Shanghai Stock Exchange, with its headquarters in Suzhou, Jiangsu Province [1] - The company specializes in electronic manufacturing services for various sectors, including communications, industrial control, automotive electronics, medical electronics, and consumer electronics [1] Group 2: Financial Performance - For Q3 2025, Yidelong reported revenue of 1.723 billion yuan, ranking 37th among 88 companies in the industry, with the industry leader, Foxconn, generating 60.393 billion yuan [2] - The net profit for the same period was 178 million yuan, placing the company 25th in the industry, while the top performer had a net profit of 22.522 billion yuan [2] Group 3: Financial Ratios - As of Q3 2025, Yidelong's debt-to-asset ratio was 33.64%, down from 36.34% year-on-year, which is lower than the industry average of 44.84% [3] - The gross profit margin for Q3 2025 was 26.64%, slightly up from 26.59% year-on-year, exceeding the industry average of 19.47% [3] Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 9.95% to 11,800, while the average number of shares held per shareholder decreased by 9.05% [5] - Notable shareholders include Yifangda Kexun Mixed Fund, which increased its holdings by 831,100 shares [5] Group 5: Market Outlook - The global EMS market is projected to reach $799 billion by 2028, with a CAGR of approximately 4.6% [6] - Yidelong is focusing on three strategic transformations: targeting top-tier clients, enhancing R&D collaboration with clients, and expanding global operations [6] - The company has developed a PCB axial motor that addresses production bottlenecks and fills a domestic technology gap [6]

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 2.26 CNY, corresponding to a PE ratio of 28/23/19X for the years 2025-2027 [8]. Core Insights - The company, Yidelong, has been deeply engaged in the EMS (Electronic Manufacturing Services) sector for over 20 years and is undergoing a strategic transformation from OEM (Original Equipment Manufacturer) to ODM (Original Design Manufacturer), aiming to become a global leader in electronic manufacturing services with stable growth in performance [2][7]. - The EMS market is projected to grow steadily, with a global market size expected to reach 799 billion USD by 2028, reflecting a CAGR of approximately 4.6% from 2024 [7][39]. - Yidelong's revenue is expected to increase significantly, with forecasts of 21.61 billion CNY in 2024, 26.49 billion CNY in 2025, and a net profit of 1.84 billion CNY in 2024, representing a year-on-year growth of 38.2% [7][9]. Summary by Sections Company Overview - Yidelong specializes in EMS, providing customized R&D, supply chain management, and product development services across various sectors, including industrial control, communications, medical electronics, automotive electronics, and consumer electronics [15][18]. - The company has a clear and stable shareholding structure, with the controlling shareholders holding 45.12% of the total shares [15]. Financial Performance - The company's revenue has shown steady growth, increasing from 1.289 billion CNY in 2020 to an expected 21.61 billion CNY in 2024, with a CAGR of 13.79% [20]. - The net profit is projected to rise significantly, with 2024 net profit expected to be 1.84 billion CNY, a 38.2% increase year-on-year [7][20]. Industry Analysis - The EMS industry is characterized by stable growth driven by diverse downstream sectors, including industrial control, communications, automotive electronics, medical electronics, and consumer electronics [7][39]. - The global EMS market is expected to grow from 633.2 billion USD in 2024 to 799 billion USD by 2028, indicating a robust demand for EMS services [39]. Strategic Transformation - Yidelong is transitioning to focus on major industry clients, enhancing its R&D capabilities by embedding teams within client organizations, and expanding its global production capacity [7][50][61]. - The company is developing innovative products such as PCB axial motors, which offer advantages over traditional motors, including higher efficiency, lightweight design, low noise, and high reliability [7][71][80]. Future Outlook - The company aims to enhance its position as a high-end electronic manufacturing service provider by continuing to develop quality clients and integrating R&D, manufacturing, and service capabilities [67].

Group 1: Yidelong - The company achieved growth in industrial control, communications, and medical sectors in the first half of 2025, with a 22.44% year-on-year increase in communications revenue driven by server customer demand [1] - The company is expanding its overseas factory layout in Vietnam, Mexico, and Romania to mitigate tariff risks, with export modes primarily using FOB and EXW, where customers bear import duties [1] - The company plans to expand its overseas factories in the second half of 2025, although specific plans are not yet determined [1] - The company is increasing R&D investments and has established product development collaborations with several global industry leaders [1] Group 2: Yidong Electronics - The company reported a revenue of 1.009 billion yuan in the first half of 2025, marking a 27.77% year-on-year increase and achieving a historical high for the same period [2] - The company has successfully transitioned from IGBT heat sinks to liquid cooling structures for computing chips, with bulk shipments already made and expansion into liquid cooling for computing servers [2] - FPC products have been integrated into clients such as Xiaomi, DJI, and Xiaotiancai, and are being applied in smart terminals, drones, panoramic cameras, and expanding into embodied robots, OLED, foldable screens, and automotive displays [2] - The company leverages its integrated capabilities in mold design, precision processing, and surface treatment to provide system-level solutions through "connector + cooling" collaborative schemes [2]