YUTO TECH.(002831) 华福证券·2024-09-26 00:07Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Views - The company is positioned as a leading provider of comprehensive packaging solutions in China, with a diversified product portfolio and a strong focus on the consumer electronics sector, which is expected to benefit from a recovery in demand [11][20]. - The company has demonstrated resilience in revenue growth, achieving a revenue of 7.353 billion yuan in the first half of 2024, a year-on-year increase of 15.5%, and a net profit of 497 million yuan, up 15.2% year-on-year [2][12]. - The company plans to enhance shareholder returns by maintaining a dividend payout ratio of no less than 60% from 2023 to 2025, highlighting its long-term investment value [4][10]. Summary by Sections 1. Company Overview - The company specializes in the research, manufacturing, and sales of paper packaging products and environmentally friendly plant fiber products, providing integrated services including design, technical development, and logistics [11][29]. - The main products include paper packaging, plant fiber molded products, biodegradable materials, and various functional materials, with a strong presence in the consumer electronics sector [11][21]. 2. Business Segments - 3C Packaging: The company is the largest producer of premium paper packaging, with significant partnerships in the consumer electronics industry, including major clients like Huawei and Sony. The recovery in global smartphone sales is expected to support this segment [20][22]. - Cigarette and Alcohol Packaging: The company has expanded its high-end cigarette and alcohol packaging business, achieving significant revenue growth in recent years, with alcohol packaging revenue reaching 1.22 billion yuan in 2022 [23][26]. - Eco-friendly Paper Plastics: The company is well-positioned to benefit from the growing demand for biodegradable materials, with a compound annual growth rate (CAGR) of 36.1% in its eco-friendly packaging segment from 2019 to 2023 [29][34]. 3. Profitability and Financial Performance - The company achieved a gross margin of 26.23% in 2023, an increase of 2.48 percentage points year-on-year, supported by controlled raw material costs and improved operational efficiency through smart manufacturing initiatives [3][18]. - The net profit margin for 2023 was 9.82%, reflecting a year-on-year increase of 1.8 percentage points, indicating a positive trend in profitability [3][18]. 4. Future Outlook and Investment Recommendations - The company is expected to see net profit growth rates of 16%, 18%, and 11% for 2024, 2025, and 2026, respectively, with a current price-to-earnings (P/E) ratio of 12x, which is below the average of comparable companies [4][10]. - The report emphasizes the company's commitment to enhancing shareholder returns and its potential for long-term growth across various business segments, particularly in consumer electronics and eco-friendly packaging [4][10].