UE(603600) 天风证券·2024-07-31 10:00Investment Rating - The investment rating for the company is "Increase" (maintained) with a target price of 9.13 CNY per share [11]. Core Viewpoints - The company has established a solid foundation in customer resources, production capacity, localized supply chains, personnel quality, and technology through its investment in a production base in Vietnam since 2018. Most of its shipments to the U.S. are now produced in Vietnam [2]. - The company is leveraging its production bases in China, Vietnam, and Romania to meet global procurement needs, enhancing its competitive advantage amid a new wave of order transfers from European and American clients [4]. - The furniture industry has developed a globally integrated cooperation model, and the company is expected to achieve net profits of 333 million, 415 million, and 495 million CNY for the years 2024-2026, with corresponding EPS of 1.00, 1.25, and 1.49 CNY per share, and PE ratios of 9, 7, and 6 times [5]. - The company has successfully participated in exhibitions and client visits, establishing significant channels and major clients such as Costco and Sam's, laying a solid foundation for future business growth [9]. - The company is actively expanding its production capacity in Vietnam and Romania, with the Romanian base having commenced production in the first half of 2023, supporting its market expansion in Europe and beyond [16][17]. Summary by Sections Financial Data and Valuation - The company’s revenue for 2022 was 4,055.28 million CNY, with a projected increase to 4,433.92 million CNY in 2024 and 6,243.39 million CNY by 2026, reflecting a growth rate of 25.31% in 2024 and 16.69% in 2026 [19]. - The net profit attributable to the parent company is expected to be 332.72 million CNY in 2024, increasing to 494.93 million CNY by 2026, with corresponding EPS of 1.00 CNY and 1.49 CNY [19]. - The company maintains a healthy financial position with a debt-to-asset ratio of 37.69% and a return on equity (ROE) of 19.05% [11][14]. Operational Efficiency - The company has completed the construction of an ERP system across its Vietnamese and Romanian bases, enhancing real-time information sharing and operational efficiency [7]. - The company is focused on digital transformation to improve operational efficiency through various information system constructions [18].